The Cost of Capital Is

question 48

Multiple Choice

The cost of capital is

• A) the opportunity cost of using funds to invest in new projects.
• B) the rate of return the firm must earn on its investments in order to satisfy the required rate of return of the firm's investors.
• C) the required rate of return for new capital investments which have typical or average risk.
• D) all of the above.

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Definitions:

Threshold

The point of intensity at which a stimulus begins to produce a sensation or elicit a response, marking the limit between the absence and the beginning of a perception.

Membrane Potential

The difference in electric potential between the interior and the exterior of a biological cell.

Action Potential

A rapid change in electrical potential across a cell's membrane that occurs when a neuron sends information down an axon.

Synapse

The junction between two neurons or a neuron and a muscle or gland cell, where electrical or chemical signals are transmitted.