A company has a real cost of capital of 6 percent per annum and inflation is 3
Question:
A company has a real cost of capital of 6 percent per annum and inflation is 3 percent per annum.
The company’s money cost of capital per annum is:
(a) 9.00%
(b) 2.91%
(c) 3.00%
(d) 9.18%
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...
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