Everything else equal, an asset's value is:
A. inversely related to the rate of return investors require to purchase it.
B. directly proportional to the cost of debt used in the capital budgeting process of the firm.
C. not related to the cash flows that the asset is expected to generate during its life.
D. inversely related to the cost of debt used in the capital budgeting process of the firm.
E. directly proportional to the rate of return investors require to purchase it.
Answer: A
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