Which of the following statements is not correct ?

[A] The cost of capital is required rate of return to ascertain the value of the firm.

[B] Different sources of funds have a specific cost of capital related to that source only.

[C] Cost of capital does not comprise any risk premium.

[D] Cost of capital is basic data for NPV technique

Answer & Explanation
Answer: Cost of capital does not comprise any risk premium.

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