Cost of capital is knowns as the ____. Check all that apply: (1) required return (2) appropriate discount rate (3) marke...

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Cost of capital is knowns as the ____. Check all that apply: (1) required return (2) appropriate discount rate (3) marke...

Cost of capital is knowns as the ____.

Check all that apply:

(1) required return

(2) appropriate discount rate

(3) market capitalization rate

(4) opportunity cost of investing in real assets instead of financial assets with the same risk

(5) minimum expected return an investment must offer to be attractive

business finance

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Answer 1

Answer #1

Cost of Capital is the Rquired Ret from Project, It will be used to discount the future CFs.

Market Value = CF / COst of Capital

Cost of Capital is the minimum Rate expected from Project else Project will be rejected.

1,2,3 and 5 are correct.

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Answer 2

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