The returns investors receive are related to but not equal to the firm's component costs of capital.

Question

Quizplus · Accepted Answer

The returns that investors receive are related to the firm's cost of capital, but they may not be exactly equal due to factors such as market conditions, risk, and specific company performance. Therefore, the statement "returns investors receive are related to but not equal to the firm's component costs of capital" is true.

The Returns Investors Receive Are Related to but Not Equal