The Weighted Average of a Firm's Expected Return on Its

question 136

Multiple Choice

The weighted average of a firm's expected return on its stock and the interest rate that it pays for debt is known as the:

• A) internal rate of return.
• B) opportunity cost of capital.
• C) risk-free rate of return.
• D) company cost of capital.

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Definitions:

Supply

The total amount of a product or service that is available for purchase at any given time.

Demand

The amount of a product or service buyers are prepared and capable of buying at a specific price.

Tax

A mandatory monetary fee or different kind of tax enforced on a taxpayer by a government entity.

Supply

The aggregate supply of a distinct item or service offered to purchasers.