For most firms, the cost of capital is probably in the range of:
A)the prime rate, plus or minus 2 percentage points.
B)less than 10%.
C)between 10% and 20%.
D)more than 20%.

Question

Quizplus · Accepted Answer

The cost of capital for most firms typically falls between 10% and 20%, reflecting the average return required by investors and the risk associated with the firm's operations.

For Most Firms, the Cost of Capital Is Probably in the Range