Which of the following is the amount by which the required rate of return exceeds the risk-free rate of interest?

Question

Quizplus · Accepted Answer

The amount by which the required rate of return exceeds the risk-free rate of interest is known as the risk premium. Therefore, the correct option is C. Cost of debt refers to the cost a company incurs when they borrow money through a loan. Cost of preference shares is the return that is expected by investors who provide capital in the form of preference shares. Divisional WACC is the weighted average cost of capital for a specific division within a company.

Which of the Following Is the Amount by Which the Required