The Cost of Capital Is the

question 44

Multiple Choice

The cost of capital is the

• A) interest received on investments made by the company.
• B) price of borrowing money.
• C) difference between cost of inputs and outputs.
• D) total value of raw materials that a company uses.

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Definitions:

Revenue

The income generated from normal business operations, calculated as the total sales of goods or services.

Net Income

The total earnings of a company after deducting all expenses, taxes, and costs from its total revenue, indicating the financial health of a company.