What is the name given to the rate of return a firm must earn to meet
QUESTION
What is the name given to the rate of return a firm must earn to meet the lenders’ and shareholders’ expectations?
A) collateral rate
B) secured rate
C) tax rate
D) cost of capital
E) venture capital
ANSWER
Answer: D
Explanation: D) A financial manager must pay attention to the cost of capital, the rate of return a firm must earn to meet the lenders’ and shareholders’ expectations.
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