The Cost of Capital Is

question 13

Multiple Choice

The cost of capital is

• A) the minimum return that a capital project must earn to be accepted.
• B) the maximum return a project can earn.
• C) the return the firm had earned on a previous project. .
• D) None of the above

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Definitions:

Variability

The degree to which scores in a set of data spread out or differ from each other.

Range

The range is calculated by subtracting the smallest value from the largest value in a set of data.

Interquartile Range

A measure of variability, calculated by subtracting the first quartile from the third quartile of a data set.

Mean

The average value of a set of numbers, calculated by dividing the sum of all the numbers by the count of numbers.