All of the definitions are correct.
It is the hurdle rate, minimum required return and also the cost of new financing.
Question 29 (4 points) The marginal cost of capital is The minimum acceptable rate of return...
The cost of capital Is the minimum acceptable rate of return for capltal Investment True or False True False Which of the following Is not a function of financial markets? Multiple Choice allow Indiduals to diversify thelr risk. provide convenient ways to make large payments allow indlviduais to purchase a range of goods online provide funds to companies that wish to expand.
1. The internal rate of return identifies: A. the minimum acceptable discount rate. B. the cost-benefit ratio. C. the average profit from a project. D. none of the given answers
does more than one apply? which should be checked thanks ✓ Saved Question 3 (4 points) [Select all relevant.) A firm's marginal cost of capital is the minimum rate of return that investors require for providing capital to the company rate of return the firm must earn on its investments in order to maintain its stock price. none of these. discount rate used to evaluate the cash flows of investment projects with the same risk as the firm's existing assets....
(Select all relevant.] A firm's marginal cost of capital is the weighted average of the cost of the debt and equity provided to the company by all investors and creditors. rate of return the firm must earn on its investments, in order to maintain its stock price. minimum rate of return that investors require for providing capital to the company discount rate used to evaluate the cash flows of investment projects with the same risk as the firm's existing assets....
When using internal rate of return, the cost of capital acts as a a. Capital cost rate b. Hurdle rate c. Star rate d. Super rate Select one: a. Super rate b. Hurdle rate c. Star rate d. Capital cost rate
The weighted average cost of capital (WACC) Group of answer choices is the expected return on the overall market portfolio. is the maximum return an investor can expect to earn on a portfolio of its risky projects. is the minimum return a firm must earn on its investments in order to pay each source of financing its required rate of return. all of the above are true.
When using internal rate of return, the cost of capital acts as a a. Capital cost rate b. Hurdle rate Star rate d. Super rate Select one:
Calculate the minimum acceptable rate of return if 2/3 of the capital of ABC corp. is borrowed at 5% and the remainder of its capital is equity earning 10%
Question 4 (1 point) 1. A capital budgeting project is acceptable if the rate of return required for such a project is greater than the project's internal rate of return. True False
Question 1 (1 point) Company A has an internal cost of capital of 7% annually. It is evaluating its investment options against its internal costs and has identified three potential investments: Investment A: Bond with annual returns of 8% Investment B: Bond with annual returns of 4% Investment C: Bond with annual returns of 12% Which of the above investments should the company consider taking on given its internal cost of capital? O A only C only A and C...