____________ is the cost to the business of keeping its owners sufficiently satisfied to remain as owners. It is the minimum rate of return on equity that owners must receive from the business in the form of ordinary income and capital gains. (Points : 25)

Cost of equity Cost of capital Cost of debt nominal interest rate inflation

Question 2. 2. ____________ can be estimated by dividing the total amount that a business has paid in interest by the average total liabilities for the same period under consideration. (Points : 25)

inflation Cost of equity nominal interest rate Cost of capital Cost of debt

Question 3. 3. ____________ is the number of years that it takes the sum of the net cash flows to equal or exceed the net cash outlay. (Points : 25)

IRR NPV B/C ratio simple rate of return payback period

Question 4. 4. The ____________ equals the annual net income provided by an asset divided by the initial cost to acquire the asset. (Points : 25)

internal rate of return nominal rate of return real rate of return simple rate of return inflation rate