Which cost takes into account the return demanded on the firm's equity and the amount the firm must pay on its debt?
A)Cost of capital
B)Obsolescence (spoilage)cost
C)Handling cost
D)Occupancy cost

Question

Quizplus · Accepted Answer

The cost that takes into account the return demanded on the firm's equity and the amount the firm must pay on its debt is known as the cost of capital. It factors in both the cost of debt and equity financing, and is essential in determining a firm's minimum required return on investment.

Which Cost Takes into Account the Return Demanded on the Firm's