The cost of capital is the rate of return that borrowers must pay investors.

Question

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The cost of capital is the rate of return that investors require in order to invest in a company or project. This rate of return may include the cost of debt and the cost of equity, and is typically considered the minimum rate of return required by investors. Borrowers must pay this rate of return to investors in order to attract investment capital.

The Cost of Capital Is the Rate of Return That