The Cost of Capital

question 34

Multiple Choice

The cost of capital:

• A)Is the expected rate of return on capital investment
• B)Is an opportunity cost determined by the risk-free rate of return.
• C)Is the interest rate that the firm pays on a loan from a bank or insurance company.
• D)For risky investments is normally higher than the firm's borrowing rate.

---

Definitions:

Parenteral Nutrition

Nutritional support given intravenously, bypassing the digestive tract, used for individuals who cannot obtain nutrition by oral or enteral routes.

Fluid Retention

The accumulation of excess fluid in the body's tissues, leading to swelling, often affecting the legs, feet, or abdomen.

Septicemia

A serious bloodstream infection caused by bacteria, leading to systemic inflammation and potentially life-threatening complications.

Fat Emulsions

A mixture used in intravenous feedings to provide patients with essential fatty acids and calories.