The Normal Rate of Return on Equity Capital Is Also

question 177

Multiple Choice

The normal rate of return on equity capital is also known as

• A) the explicit cost of capital.
• B) the marginal cost of capital.
• C) economic profit.
• D) the opportunity cost of capital.

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Definitions:

Heuristics

Cognitive shortcuts or rules of thumb that simplify decision making, often at the cost of accuracy or thoroughness.

Anagrams

A game or puzzle in which players create new words by changing the order of letters in the original word.

Infinite Creativity

The concept that creative potential and imagination have no limits or boundaries.

Displacement

A defense mechanism in which a person redirects a negative emotion from its original source to a less threatening recipient.