1952. Cost of capital is equal to required return rate on equity in case if investors are only

valuation manager
common stockholders
asset seller
equity dealer
✅ The correct answer is B.
Cost of capital is equal to required return rate on equity in case if investors are only common stockholders. 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.

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