Answer
No, because the cost of capital and the interest paid on long-term debt are not the same. The cost of capital is the cost of a company's funds, from all sources of financing, both debt and equity.
Work Step by Step
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Managerial Accounting (15th Edition)
by Garrison, Ray; Noreen, Eric, Brewer, Peter
Published by
McGraw-Hill Education
ISBN 10:
007802563X
ISBN 13:
978-0-07802-563-1
Chapter 13 - Capital Budgeting Decisions - Questions - Page 606: 13-8
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