The required rate of return demanded by stock and bond investors and used in net present value capital budgeting analyses as the discount rate is called the _____.

Question

Quizplus · Accepted Answer

The required rate of return demanded by stock and bond investors and used in net present value capital budgeting analyses as the discount rate is called the cost of capital. This rate represents the weighted average cost of both debt and equity financing used by a company to finance its operations.

The Required Rate of Return Demanded by Stock and Bond