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The rate that a company must pay to obtain funds from creditors and stockholders is known as the Select one: a. hurdle rate. b. cost of capital. c. cutoff rate. d. All of these answers are correct.

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Answer:

B)cost of capital.

Step-by-step explanation:

In economics as well as accounting, the cost of capital can be regarded as

cost of funds of a company i.e debt and equity. From investor's point of view it can be regarded as rate of return required on a company existing securities portfolio, and this is utilized I evaluation of new projects of a company. It should be noted that the rate that a company must pay to obtain funds from creditors and stockholders is known as cost of capital..

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