28. The cost of capital is:

a. the minimum required return on a new investment.

b. another term for the market risk premium.

c. the return on the overall market.

d. another term for the risk-free rate of return.

e. the maximum cost of issuing a new security.

Part B: Which one of the following is an example of systematic risk?

A		an increase in federal tax rates
b		employee walkout in protest of a firm's promotion policies
c		surprise firing of a firm's chief financial officer
d		acquisition of a competitor by a retail firm
e		layoffs by a major retailer