Ted is trying to decide what cost of capital he should assign to a project. Whic
ID: 2708041 • Letter: T
Question
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? Answer
Amount of debt used to finance the project
Use, or lack thereof, of preferred stock to finance the project
Mix of funds used to finance the project
Risk level of the project
Length of the project's life
Explanation / Answer
Risk level of the project