CFA Practice Question

There are 151 practice questions for this study session.

CFA Practice Question

Dan is considering an investment project. He knows that the cost of capital associated with the project depends on

A. the risk associated with the project.
B. the total risk of the firm's equity.
C. the interest rate on the firm's existing long term bonds.
D. the type of security to be issued to finance the project.
E. the type of assets needed for the project, that is, whether they are long-term or short-term assets.
Correct Answer: A

User Contributed Comments 2

User Comment
ceekay Risk associated with the project includes market risk and corporate risk
cfaajay where is this asked ceeKay? :-)
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