The rate of return a company must earn to maintain its value is:

Question

Quizplus · Accepted Answer

The cost of capital is the rate of return a company must earn to maintain its value. It is the minimum required return that investors and lenders need in order to fund a company's operations and growth. If a company earns less than its cost of capital, it is destroying value for its investors. Therefore, the cost of capital is a critical metric for companies to consider when making investment decisions.

The Rate of Return a Company Must Earn to Maintain