ted is trying to decide what cost of capital he should assign to a project. which one of the following should be his primary consideration in this decision? multiple choice mix of funds used to finance the project use, or lack, of preferred stock as a financing option risk level of the project amount of debt used to finance the project length of the project's life

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sarahj2693 sarahj2693

12-12-2022
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ted is trying to decide what cost of capital he should assign to a project. which one of the following should be his primary consideration in this decision? multiple choice mix of funds used to finance the project use, or lack, of preferred stock as a financing option risk level of the project amount of debt used to finance the project length of the project's life

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shrivastavarupam shrivastavarupam · Answer 1 · 2022-12-21T04:05:41+01:00

The risk level of the project amount of debt used to finance the project length of the project's life has been assigned for the project by Ted. Hence, option D is appropriate.

What is the Debt?

A debt is an amount of money that has been borrowed for a predetermined period and that must be repaid, plus interest. The borrower's creditworthiness affects both the debt's size and its acceptance. There are various debt categories, and they change depending on the borrower's needs.

Four categories of debt are frequently used: secured, unsecured, revolving, and installment. You'll also notice that categories frequently overlap.

Credit is cash you can borrow, but debt is the capital you owe. Although credit, as well as debt, isn't the same, careful management of both is essential for your overall financial well-being.

Hence, option D is correct.

Learn more about the Debt here:

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