InterviewSolution
Saved Bookmarks
| 1. |
Capital invetment decision cost of capital serve as |
|
Answer» Explanation: 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. Thus, the cost of capital is the rate of return required to persuade the investor to make a given investment. |
|