Which of the following statements is correct?

Select one:

a. Firm value is created when the firm earns a return on its investment equal to the cost of capital.

b. Firm value is created when the firm earns a loss on its investment equal to the cost of capital.

c. Firm value is created when the firm earns a return on its investment in excess of the cost of capital.

d. Firm value is created when the firm earns a return on its investment less than the cost of capital.