The component cost of capital is best described as:
A) cost of capital provided by a given creditor or stockholder.
B) determined by interest charged.
C) cost of capital issued by a creditor.
D) cost of capital demanded by the stockholder.

Question

Quizplus · Accepted Answer

The component cost of capital refers to the cost of each specific type of capital, such as debt or equity, provided by creditors or stockholders.

The Component Cost of Capital Is Best Described As