Q190
Cost of capital is the ______ rate of return expected by the investor.
A.
minimum
B.
maximum
C.
expected
AnswerD.
marginal
Answer: Option C
Solution
Answer: Option C
Solution:
Cost of capital is the expected rate of return expected by the investor. Cost of capital refers to the opportunity cost of making a specific investment. It is the rate of return that could have been earned by putting the same money into a different investment with equal risk.