A company has a money cost of capital of 9 per cent. The rate of inflation is
Question:
A company has a money cost of capital of 9 per cent. The rate of inflation is 3 per cent. The company’s real cost of capital is nearest to:
(a) 6.0%
(b) 12.0%
{c) 12.3%
(d) 5.8%
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