Examveda
Examveda

Capital gain expected by stockholders and dividends are included in

A. debt rate

B. investment return

C. interest rate

D. cost of equity

Answer: Option D

Solution(By Examveda Team)

Capital gain expected by stockholders and dividends are included in cost of equity. The cost of equity is the return a company requires to decide if an investment meets capital return requirements.

This Question Belongs to Commerce >> Financial Management

Join The Discussion

Related Questions on Financial Management

Investment is the _______________.

A. net additions made to the nation’s capital stocks

B. person’s commitment to buy a flat or house

C. employment of funds on assets to earn returns

D. employment of funds on goods and services that are used in production process