Discount rate for valuing their firms cash flows

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Reference no: EM13873975

When firms use multiple sources of capital, they need to calculate the appropriate discount rate for valuing their firm's cash flows as:

a simple average of the capital components costs.

a sum of the capital components costs.

a weighted average of the capital components costs.

they apply to each asset as they are purchased with their respective forms of debt or equity.

Reference no: EM13873975

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