Explain why the required rate of return on a firms assets must be equal to the weighted average cost of capital associated with its liabilities and equity ...

In order to conceptualize the answer to this question it helps to thi ...

Explain why the required rate of return on a firms assets must be equal to the weighted

Question:

Explain why the required rate of return on a firm’s assets must be equal to the weighted average associated with its liabilities and equity.

Cost Of Capital
Cost of capital refers to the opportunity cost of making a specific investment . Cost of capital (COC) is the rate of return that a firm must earn on its project investments to maintain its market value and attract funds. COC is the required rate of...