Posted by angie on Friday, January 25, 2008 at 8:14am.
A Google search of the phrase "reasonable cost of capital" reveals that this question has been plastered all over the internet in exactly the same form. In a few cases, "answers" are available for a few dollars, which I was not willing to pay.
I am not a business school graduate, but seems to me that if a firm is able to borrow funds at 10%, then that is the cost of capital to that company, regardless of the risk of the project that they apply it to.
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