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Cost of Capital Is the Maximum Desired Rate of Return

question 94

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Cost of capital is the maximum desired rate of return on a particular investment.


Definitions:

Illegal And Unenforceable

Describes contracts that cannot be legally upheld or enforced due to the inclusion of illegal acts or elements.

Usury

The lending of money at an exorbitant or unlawful rate of interest.

Adhesion Contract

A contract created by a party to an agreement that is presented to the other party on a take-it-or-leave-it basis. Such contracts are legal but are sometimes rescinded on the grounds of unconscionability and the absence of one party’s free will to enter a contract.

Habitual Drunkards

A legal term historically used to describe individuals who regularly engage in excessive drinking of alcohol, often considered in legal contexts regarding their competency or rights.

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