Of the following, an example of a component of a firm's cost of capital is:

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The return on common stock required by investors is an example of a component of a firm's cost of capital. This is because it represents the cost to the firm of raising capital through equity financing. The cost of capital is the rate of return that a company must earn on its investments in order to satisfy the expectations of its investors and other stakeholders. The return on common stock is one component of this overall cost of capital.

Of the Following, an Example of a Component of a Firm's