Cost of capital is the maximum desired rate of return on a particular investment.

Name: Cost of capital is the maximum desired rate of return on a particular investment.
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Cost of capital refers to the cost of financing a business, which includes the cost of debt, equity, and other financing sources, and it is not the maximum desired rate of return on a particular investment. The maximum desired rate of return on an investment is generally referred to as the required rate of return or hurdle rate.

Cost of Capital Is the Maximum Desired Rate of Return