The cost of equity can also be viewed as an opportunity cost.

Name: The cost of equity can also be viewed as an opportunity cost.
Brand: Quizplus
Rating: 4.9 (58 reviews)

Question

Quizplus · Accepted Answer

The cost of equity represents the return that investors expect to receive in order to take on the risk of investing capital into a company's shares. This return expectation is similar to an opportunity cost, as investors could potentially earn a similar return by investing their capital elsewhere.

The Cost of Equity Can Also Be Viewed as an Opportunity