Question

Why does the cost of capital constitute a direct link between return on capital expenditure and the returns required by capital investors

Answer 1

Answer:

The overview of the statement is summarized below.

Explanation:

• The capital structure seems to be the ratio of net required by investors toward about there capital expenditure. Investment return capital spending seems to be the return rate required for expenditure.
• Returns required by financial institutions are much worse than the amount of capital, even before investors necessitate a reasonable level of profitability.