Cost of capital from all the sources of funds is called ________.

specific cost

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composite cost

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implicit cost

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simple average cost

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Solution

The correct option is B composite cost
Composite cost of capital is a company's cost to finance its business, determined by, and also referred to as "weighted average cost of capital" or $W A C C .$ The calculation involves multiplying the cost of each capital component by its proportional weight and taking the sum of the results.

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