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The Cost of Capital Is Defined as The

Question 109

Multiple Choice

The cost of capital is defined as the:


A) sum of liabilities and stockholders' equity accounts.
B) weighted average of the returns demanded by the company's stockholders and lenders.
C) rate of return demanded by stockholders times the rate of return demanded by lenders.
D) rate of return demanded by the stockholders divided by the rate of return demanded by lenders.

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