Register now or log in to join your professional community.
<p style="text-align:justify;"><span><strong> (a)Weighted Average cost of all debts, </strong></span></p> <p style="text-align:justify;"><span><strong>(b) Rate of Return expected by Equity Shareholders, </strong></span></p> <p style="text-align:justify;"><span><strong>(c) Average IRR of the Projects of the firm,</strong></span></p> <p style="text-align:justify;"><span><strong> (d)Minimum Rate of Return that the firm should earn.</strong></span></p>
Answer: D
Cost of capital is the minimum rate of return which a company is expected to earn from a proposed project in order to justify the EPS (Earning Per Share).
Regards,
Joshi Mathew
Certified Internal Auditor #1036906
(d)Minimum Rate of Return that the firm should earn.
Answer D correct answer
