The Cost of Capital Which one of the following statements is false? a. The costs of capital

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The Cost of Capital Which one of the following statements is false?

a. The costs of capital for an organization include the interest costs expected by long-term debt holders and the return expected by the owners or stockholders.

b. The cost of capital will generally include an implicit cost related to current obligations such as accounts payable and wages payable.

c. The stockholders’ equity in an organization, including retained earnings, represents assets that the company, at some point in the future, must pay to use.

d. The cost of capital is measured as an average rate that reflects a combination of interest rates and expected rates of return in the organization.

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Accounting Concepts And Applications

ISBN: 9780324376159

10th Edition

Authors: W. Steve Albrecht, James D. Stice, Earl K. Stice, Monte R. Swain

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