The cost to a corporation of each type of capital is dependent upon
A. the risk-free rate of bonds plus the business risk of the firm.
B. the risk-free rate of each type of capital plus the business risk of the firm.
C. the risk-free rate of each type of capital plus the financial risk of the firm.
D. the risk-free rate of each type of capital plus the business risk and the financial risk of the firm.
Answer:D
The cost to a corporation of each type of capital is dependent upon
A. the risk-free rate of bonds plus the business risk of the firm. B. the risk-free rate of each type of capital plus the business risk of the firm. C. the risk-free rate of each type of capital plus the financial risk of the firm. D. the risk-free rate of each type of capital plus the business risk and the financial risk of the firm.