The ________ is the rate of return that a firm promises to pay its suppliers of capital to induce them to invest in the firm.
A) cost of debt
B) cost of advantage
C) cost of parity
D) cost of capital

Question

Quizplus · Accepted Answer

The cost of capital is the rate of return that a firm promises to pay its suppliers of capital to induce them to invest in the firm. The other options (cost of debt, cost of advantage, cost of parity) do not accurately describe this concept.

The ________ Is the Rate of Return That a Firm