The Cost of Capital Is

question 2

Multiple Choice

The cost of capital is

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

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Definitions:

Glorieta Pass

A significant site of the American Civil War, located in New Mexico; it was the scene of a decisive battle in 1862.

Union Victory

The term refers to the triumph of the Northern states, the Union, over the Confederate states in the American Civil War, leading to the preservation of the United States and the abolition of slavery.

Slavery

A system in which individuals are owned by others, deprived of personal freedom, and forced to perform labor or services against their will.

Pickett's Charge

A significant assault led by Confederate General George Pickett during the Battle of Gettysburg in the American Civil War.