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Examveda

Capital budgeting decisions are analyzed with help of weighted average and for this purpose

A. component cost is used

B. common stock value is used

C. cost of capital is used

D. asset valuation is used

Answer: Option C

Solution(By Examveda Team)

Capital budgeting decisions are analyzed with help of weighted average and for this purpose cost of capital is used. Capital budgeting is a company's formal process used for evaluating potential expenditures or investments that are significant in amount.

This Question Belongs to Commerce >> Financial Management

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