The cost of capital for each source of funds is dependent on current market conditions and expected rates of return.

Question

Quizplus · Accepted Answer

The cost of capital for each source of funds is determined by the current market conditions and expected return rates. Factors such as inflation, interest rates, and market competition can affect the cost of capital for different sources of funds. Therefore, the cost of capital is not fixed and can vary over time.

The Cost of Capital for Each Source of Funds Is