Tom is interested in opening a grand new restaurant in Norfolk. In order to have sufficient capital to start his business, Tom decides to borrow $250,000 from Frank, one of his good friends. Asking for a 10% annual interest rate, Frank agrees to lend Tom the stated amount of money for 10 years.

From ________s perspective, the 10% annual interest rate is ______________.

A. Tom; the cost of capital

B. Frank; the cost of capital

C. Tom; the required rate of return

D. Frank; the sustainable growth rate

E. None of the above