The company cost of capital is the expected rate of return that investors demand from the company's assets and operations.
TRUE

Question

Quizplus · Accepted Answer

The statement is true. The company cost of capital is the minimum rate of return that a company must earn on its investments in order to satisfy the expectations of its investors. It represents the cost of all of the sources of financing used by the company, including equity, debt and other forms of financing.

The Company Cost of Capital Is the Expected Rate of Return