EXAMPLES ON COST OF CAPITAL 1. Cost of Capital is A. The minimum rate of return which the firm must earn on the equity share. B. The minimum cost to be paid to the equity shareholders. C. The minimum cost to be paid to the bankers for inducing bankers to subscribe to the capital. D. All the above 2. From investor's point of view, the cost of capital is A. Interest Rates C. Market Value B. Yield on Capital sacrifice D. Stock Exchange Value 3. Cost of Capital from all the sources of funds is called A. Specified Cost B. Implicit Cost C. Composite Cost D. Simple Average Cost 4. Marginal cost of capital is the cost of A. Additional Sales B. Additional Interest C. Additional Funds D. Additional Revenues 5. Cost of Capital of the following sources is implicit A. Equity Share B. Preference Share C. Reserve/ Retained Earnings D. Debenture