The cost of capital can be thought of as the rate of return required by investors in the firm's securities.

Name: The cost of capital can be thought of as the rate of return required by investors in the firm's securities.
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The cost of capital is the minimum rate of return required by investors in order to participate in funding the firm. This includes the cost of debt (interest rate paid to lenders), cost of equity (returns required by shareholders), and other sources of funding.

The Cost of Capital Can Be Thought of as the Rate