The rate of return which a firm must earn on its existing assets if the firm is to maintain the value of its stock is called the:

Name: The rate of return which a firm must earn on its existing assets if the firm is to maintain the value of its stock is called the:
Brand: Quizplus
Rating: 4.9 (54 reviews)

Question

Quizplus · Accepted Answer

The weighted average cost of capital (WACC) represents the average rate of return a company must earn on its existing assets to maintain the value of its stock. It reflects the cost of the company's capital, including both debt and equity.

The Rate of Return Which a Firm Must Earn on Its