What is meant by the term 'cost of capital'?
A) The rate of return that a company has to offer finance providers to induce them to buy and hold a financial security
B) The rate of return that a company has to offer shareholders as dividends
C) The rate of return that a company has to offer purchasers of bonds to induce them to buy and hold a financial security
D) The rate of return that a company has to pay for its capital investments
Correct Answer:
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