The Minimum Acceptable Rate of Return on an Investment, Often

question 102

Short Answer

The minimum acceptable rate of return on an investment, often the company's cost of capital, is called the ________.

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Definitions:

Corporations

Legal entities separated from their owners, which can own property, borrow money, sue or be sued, and enter into contracts.

Business Receipts

The total revenue received by a business from goods sold or services provided during a specific period.

Bondholders

Individuals or entities that own bonds, which are debt securities issued by corporations or governments, entitling them to receive a fixed amount of interest and repayment of principal.

Incorporating

The process of legally declaring a business as a corporation, enabling the owners to separate their personal assets from the business assets.