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Management · Q982

Financial Management

Graduate and Post Graduate · Management · question 982

Q982

A price for equity is called

A.
interest rate
B.
cost of equity
Answer
C.
debt rate
D.
investment return

Answer: Option B

Solution

Answer: Option B
Solution:
A price for equity is called cost of equity. The cost of equity is the return a company requires to decide if an investment meets capital return requirements.