14.6k views
1 vote
If you borrow capital to start a business and the money is provided interest-free, then your cost of capital is zero.

a. True
b. False

User Sigy
by
3.2k points

1 Answer

3 votes

Answer:

If you borrow capital to start a business and the money is provided interest-free, then your cost of capital is zero.

True

Step-by-step explanation:

Reason being that it does not take any cost to secure such capital i.e no interest, then there is no cost for such capital

User Manik Mahajan
by
3.2k points