Shares Related to Computers and the Internet Are Classified as

question 62

Multiple Choice

Shares related to computers and the Internet are classified as

• A) tech shares.
• B) blue- chip shares.
• C) income shares.
• D) cyclical shares.

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Definitions:

Cost of Capital

The cost of capital is the rate of return a company must earn on its investments to maintain its market value and attract funds, including the cost of equity and debt.

Weighted Average Cost of Capital (WACC)

The average rate of return a company is expected to pay its security holders to finance its assets, weighted according to the proportion of equity and debt in the company's capital structure.

Cost of Equity Financing

This represents the return a company must offer investors to entice investment, effectively the cost of new equity capital.

Required Rate of Return

The least percentage of yearly return needed to entice entities or individuals to invest in a particular project or security.