Discuss why the cost of capital must be used as hurdle rate

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A firm's capital structure determines its actual cost of capital, which is a critical measure in its valuation.

Evaluate the capital structure of the two firms that you have chosen as well as each firm's riskiness. Discuss why the cost of capital must be used as the hurdle rate in all investment decisions.

In your replies to others, share stories related to the companies discussed, and evaluate the riskiness of their capital structure.

Reference no: EM133753981

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