The company's minimum rate of return is also referred to as its cost of capital.

Question

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The minimum rate of return or required rate of return that a company expects to earn on its investments is referred to as its cost of capital. This cost represents the cost of financing the company's operations and investments and is usually determined by factors such as the company's debt and equity financing, interest rates, market conditions, and risk. Therefore, the statement is true.

The Company's Minimum Rate of Return Is Also Referred to as Its