The rate of return on its existing assets that a firm must earn to maintain the current value ofthe firm's stock is called the:

weighted average cost of equity.

weighted average cost of capital.

The rate of return on its existing assets that a firm must earn to mai

1.	The rate of return on its existing assets that a firm must earn to maintain the current value ofthe firm's stock is called the:
A.	return on equity.
B.	internal rate of return.
C.	weighted average cost of capital.
D.	weighted average cost of equity.
Answer» D. weighted average cost of equity.