The Rate of Return K Is Also Referred to as the

question 8

Multiple Choice

The rate of return k is also referred to as the

• A)discount rate.
• B)hurdle rate.
• C)opportunity cost of capital.
• D)all of the above

---

Definitions:

Working Capital

The difference between a company's current assets and current liabilities, indicating the liquidity of the business.

Current Liabilities

Short-term financial obligations that are due within one year or within the normal operating cycle of a business.

Liquidity

A company's ability to meet its short-term obligations using its most liquid assets, indicating financial health.

Present Value

The current worth of a future sum of money or stream of cash flows given a specified rate of return.