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Select which of the following statement is correct? (I) Capital budget decision largely depends on the cost of capital of each source. (II) Capital structure is the mix or proportion of the different kinds of short-term securities. (III) Cost of capital helps to evaluate the financial performance of the firm. (IV) As per MM approach, the cost of equity (Ke) is equal to the capitalization rate of the pure equity stream minus a premium for business risk.Select the correct answer from the options given below:

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Select which of the following statement is correct?<br /> (I) Capital budget decision largely depends on the cost of capital of each source.<br /> (II) Capital structure is the mix or proportion of the different kinds of short-term securities.<br /> (III) Cost of capital helps to evaluate the financial performance of the firm.<br /> (IV) As per MM approach, the cost of equity (Ke) is equal to the capitalization rate of the pure equity stream minus a premium for business risk.<br />Select the correct answer from the options given below:






 
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