Commerce Short Question | Gkseries

Question

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.