The cost of equity is the minimum financial return required by investors to invest in stocks of comparable risk.

Name: The cost of equity is the minimum financial return required by investors to invest in stocks of comparable risk.
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Question

Quizplus · Accepted Answer

This statement is true. The cost of equity is the rate of return that investors demand in order to invest in a particular stock, and it is usually based on the perceived level of risk associated with that investment.

The Cost of Equity Is the Minimum Financial Return Required