The Cost of Capital Is

question 65

Multiple Choice

The cost of capital is

• A)the minimum rate of return an investment project must generate in order to pay its financing costs.
• B)the minimum rate of return an investment project must generate in order to pay its financing costs plus a reasonable profit.
• C)the maximum rate of return an investment project must generate in order to pay its financing costs.
• D)the maximum rate of return an investment project must generate in order to pay its financing costs plus a reasonable profit.

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