The cost of capital is the minimum acceptable rate of return for capital investment.

Name: The cost of capital is the minimum acceptable rate of return for capital investment.
Brand: Quizplus
Rating: 4.9 (41 reviews)

Question

Quizplus · Accepted Answer

The cost of capital is the minimum rate of return that a company requires in order to undertake an investment opportunity. It is the cost of funds used for financing a business, including equity and debt. It is also known as the discount rate, hurdle rate, or required rate of return. Therefore, the statement is true.

The Cost of Capital Is the Minimum Acceptable Rate of Return