When firms use multiple sources of capital, they need to calculate the appropriate discount rate

When firms use multiple sources of capital, they need to calculate the appropriate discount rate

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 When firms use multiple sources of capital, they need to calculate the appropriate discount rate for valuing their firm's cash flows as__________. 

a simple average of the capital components costs

 a weighted average of the capital components costs

 a sum of the capital components costs

they apply to each asset as they are purchased with their respective forms of debt or equity 
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