The __________is the rate of return a firm must earn on its investments in projects in order tomaintain the market value of its stock.
A) internal rate of return
B) gross profit margin
C) net present value
D) cost of capital

Question

Quizplus · Accepted Answer

The cost of capital is the rate of return that a company must earn on its investments in order to maintain the market value of its stock. It represents the cost of financing for a company and includes both debt and equity.

The __________Is the Rate of Return a Firm Must Earn