The cost of capital is equal to the interest expense on the money borrowed for the project.

Name: The cost of capital is equal to the interest expense on the money borrowed for the project.
Brand: Quizplus
Rating: 4.8 (46 reviews)

Question

Quizplus · Accepted Answer

The cost of capital is a broader concept that includes not only the interest expense on borrowed money but also the cost of equity, preferred stock, and any other forms of financing used for a project.

The Cost of Capital Is Equal to the Interest Expense