----- is the rate of return that the company must earn on the net funds raised, in order to satisfy the equity shareholders’ demand for return

Question

TuteeHUB · Accepted Answer

Weighted average cost of capital

TuteeHUB · Answer

Cost of retained earnings

TuteeHUB · Answer

Cost of external equity

TuteeHUB · Answer

Marginal cost of capital

1.	----- is the rate of return that the company must earn on the net funds raised, in order to satisfy the equity shareholders’ demand for return
A.	Cost of retained earnings
B.	Cost of external equity
C.	Weighted average cost of capital
D.	Marginal cost of capital
Answer» C. Weighted average cost of capital

Discussion