One function of the cost of capital is to ________ for thefirm.A) determine the debt to equity ratioB) value future cash flowsC) determine the current ratioD) determine the current lending rateWhen computing the weighted average cost of capital the weightingshould be proportional based on the ______ rather than the _____value of the firm.A) book marketB) hypothetical bookC) market analystsD) market bookSuppose that a foreign project has a beta of 1.12 the risk freereturn is 9.3% and the required return on the market is estimatedat 18%. Then the cost of capital for the project isA) 17.21%B) 21.37%C) 19.04%D) 20.03%