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Olegator [25]
3 years ago
5

Which of the following statements describes the cost of capital?

Business
1 answer:
professor190 [17]3 years ago
8 0

Answer: The minimum rate of return on investments.

Explanation:

The cost of capital simply refers to the particular rate of return that a certain company expects to get from a certain investment that it does.

The cost of capital is the minimum rate of return which must be earned by a certain business before the generation of value.

The cost of capital therefore is the minimum rate of return on investments. It is the return which a company is expected to pay both the creditors and also the investors.

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