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Cost of capital may be defined as: ?

<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>

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Question ajoutée par VENKITARAMAN KRISHNA MOORTHY VRINDAVAN , Project Execution Manager & Accounts Manager , ALI INTERNATIONAL TRADING EST.
Date de publication: 2014/09/20
Thaikkattil Mathew Joshi
par Thaikkattil Mathew Joshi , Group Credit Controller , Gps Group,Dubai.

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.

georgei assi
par georgei assi , مدير حسابات , المجموعة السورية

Answer D correct answer

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