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The cost of capital used in capital budgeting should reflect the average co

The cost of capital used in capital budgeting should reflect the average cost 



1.	"Capital" is sometimes defined as funds supplied to a firm by investors.
a.	True
b.	False
2.	The cost of capital used in capital budgeting should reflect the average cost of the various sources of long-term funds a firm uses to acquire assets.
a.	True
b.	False
3.	The cost of preferred stock to a firm must be adjusted to an after-tax figure because 70% of dividends received by a corporation may be excluded from the receiving corporation's taxable income.
a.	True
b.	False




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13 Apr 2016

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  1. Genius

    The cost of capital used in capital budgeting should reflect the average cost The cost of capital used in capital budgeting should reflect the average cost

    The cost of capital used in capital budgeting should reflect the average cost ****** ******
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