The cost of capital is ________
A) the cost of debt in a firm that finances with both debt and equity
B) the cost of each financing component multiplied by that component's percent of the total borrowed
C) another name for the IRR
D) All of the above
Answer: B
Business
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With accumulated production experience and a higher volume of production, companies not only become more efficient but also ________
A) gain economies of scale B) incur higher overhead costs C) create derived demand in the market D) spend more per unit of produced output E) tend to routinely spend less on inputs
Business
An investments total return consists of its current return plus its future return
Indicate whether the statement is true or false.
Business