Which of the following statements is inaccurate concerning, Ask an Expert

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Which of the following statements is inaccurate concerning the discount rate used to compute the present value of projected future payoffs?

A. The discount rate is unaffected by changes in capital structure

B. The CAPM model can be used to determine the cost of equity capital

C. The discount rate should be a forecast of the required rate of return on the investment

D. The discount rate should reflect an appropriate level of risk associated with future payoffs to the providers of capital

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Financial Management, Finance

Category:- Financial Management
Reference No.:- M92305726

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