The component costs of capital are market-determined variables in the sense that they are based on investors' required returns.

Name: The component costs of capital are market-determined variables in the sense that they are based on investors' required returns.
Brand: Quizplus
Rating: 5.0 (42 reviews)

Question

Quizplus · Accepted Answer

The component costs of capital, such as cost of debt and cost of equity, are determined by market forces and are based on the required returns of investors.

The Component Costs of Capital Are Market-Determined Variables in the Sense