Cost of capital information is not at all necessary to establish the minimum rate of return on investments.

Question

Quizplus · Accepted Answer

The cost of capital is necessary to establish the minimum rate of return on investments, as it represents the opportunity cost of investing in a particular project or asset. Without knowing the cost of capital, it is impossible to determine whether an investment will generate a return that is sufficient to compensate for the risk taken.

Cost of Capital Information Is Not at All Necessary to Establish