Question: A firm's cost of capital: A. will decrease as the risk level of the firm increases. B. for a specific project is primarily dependent upon

A firm's cost of capital: A. will decrease as the risk level of the firm increases. B. for a specific project is primarily dependent upon the source of the funds used for the project. C. is independent of the firm's capital structure. D. should be applied as the discount rate for any project considered by the firm. E. depends upon how the funds raised are going to be spent.

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