The Minimum Acceptable Expected Rate of Return on a Project

question 117

Multiple Choice

The minimum acceptable expected rate of return on a project of a specific risk is the:

• A) project cost of capital.
• B) company cost of capital.
• C) risk-free rate of return.
• D)project beta times the market risk premium.

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Definitions:

Payroll Tax

Dues extracted from employers or laborers, usually as a percentage of the salary expenditures.

Payroll Tax

Taxes imposed on employers and/or employees, and are usually calculated as a percentage of the salaries that employers pay their staff.

Labor Supply

The total hours that workers are willing and able to work at a given wage rate.

Payroll Tax

Levies charged to both employers and employees, based on a percentage of the wages that employees receive from their employers.