Question

The cost of capital is the Blank______.

Multiple choice question.

average rate of return a company must pay its long-term creditors and shareholders for the use of their funds


sum of all cash outflows required for a capital investment


cost of state and local permits that are required to undertake a project


initial cash required for a capital investment net of the salvage value realized from the sale of the investment

Answers

Answered by GPT-4o mini
The cost of capital is the **average rate of return a company must pay its long-term creditors and shareholders for the use of their funds**.

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