The ________ is the rate of return required by the market suppliers of capital in order to attract their funds to the firm.
A) yield to maturity
B) internal rate of return
C) cost of capital
D) gross profit margin

Question

Quizplus · Accepted Answer

The cost of capital is the rate of return that a company must pay on all of its sources of financing, such as debt and equity, in order to attract and maintain capital from investors. It represents the minimum rate of return that a project must generate to create value for the company's shareholders. Yield to maturity is the total return anticipated on a bond if the bond is held until it matures. Internal rate of return is the discount rate that makes the net present value of an investment equal to zero. Gross profit margin is the ratio of gross profit to total revenue and measures the profitability of a company's sales after the cost of goods sold has been deducted.

The ________ Is the Rate of Return Required by the Market