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Question

The overall cost of capital represented symbolically as ____________.

A
kc
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B
ko
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C
kt
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D
kf
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Solution

The correct option is D ko
Overall cost of capital means the weighted average of the cost of each component of capital. It represents the combined cost of capital of various sources such as debt, preference, equity and retained earnings.
The overall cost of capital represented symbolically by 'ko'.

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