How does the cost of capital typically influence cash flow management in a business?
a. The cost of capital determines the amount of cash flow available for dividend payments.
b. The cost of capital impacts the decision-making process for investing in projects, affecting future cash flows.
c. The cost of capital is irrelevant to cash flow, as it only affects income tax obligations.
d. The cost of capital solely affects the short-term cash flow but not long-term financial strategies.