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The company's cost of capital is called

This question belongs to Commerce Financial Management
Financial Management
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The company's cost of capital is called ________.

Answer & Solution
Correct Answer: Option B
A company's cost of capital is simply the cost of money the company uses for financing. If a company only uses current liabilities and long-term debt to finance its operations, then it uses debt and the cost of capital is usually the interest rate on that debt.The cost of capital is also called the hurdle rate.
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