The Implicit Rate of Return That Must Be Paid to Induce

question 118

Multiple Choice

The implicit rate of return that must be paid to induce investors to continue to supply the funds necessary to maintain a firm's capital assets is called

• A) the investors' rate of return.
• B) the opportunity cost of labor.
• C) the opportunity cost of capital.
• D) equity capital.

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Definitions:

Ionic Compound

A chemical compound formed by the transfer of electrons from one atom to another, resulting in the formation of positively and negatively charged ions.

Aluminum

Aluminum is a lightweight, silver-white metallic element (Al) used extensively in alloys and for its properties of corrosion resistance and high conductivity.

Chlorine

A highly reactive, greenish-yellow gaseous halogen with the symbol Cl and atomic number 17, widely used in water treatment, bleaches, and industrial processes.

Ionic Compound

An ionic compound is a chemical compound composed of ions held together by electrostatic forces termed ionic bonding, typically formed between metal cations and non-metal anions.