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What Is the Cost of Shares to the Business Is

Question 7

Multiple Choice

What is the cost of shares to the business is equivalent to?


A) The average year-over-year percent increase in share price.
B) The NPV of the return to the company from its investments.
C) The bank rate grossed up by a risk premium and the rate of inflation.
D) The IRR used to evaluate the company's investment projects.
E) The NPV of the future share prices.

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