The cost of capital is:

Question

Quizplus · Accepted Answer

The cost of capital refers to the weighted average cost of obtaining funds from different sources like debt and equity. This includes both the cost of borrowing from a bank and the cost involved in issuing new shares, along with other sources of financing. The rate of interest on government bonds is just one component of the cost of debt, which is a part of the weighted average cost of capital. Therefore, option D is the best choice as it considers all the components of the cost of capital.

The Cost of Capital Is