The Cost of Capital Is ________

question 3

Multiple Choice

The cost of capital is ________.

• A)the cost of debt in a firm that finances with both debt and equity
• B)the cost of each financing component multiplied by that component's percent of the total borrowed
• C)another name for the IRR
• D)All of the above

---

Definitions:

Decision-making

The cognitive process of choosing between two or more alternatives, resulting in a final choice or action.

Risk Factor

A risk factor is any attribute, characteristic, or exposure that increases the likelihood of developing a disease or injury.

Positive Psychology

A branch of psychology focused on the study and promotion of positive aspects of human life, such as happiness, well-being, and personal strengths.

Human Strengths

The inherent potentials and positive qualities, such as resilience, courage, and empathy, that can be developed to enhance personal and collective well-being.