Multiple choice

Cost of capital does not mean

  1. cut off rate decided by management

  2. rate of interest

  3. expectations of investors for dividend

  4. money paid to SEBI for permission to acquire capital
Reveal answer Fill a bubble to check yourself
D Correct answer
Explanation

Cost of capital represents the required rate of return for investors, a cut-off rate for projects, or interest expectations, but it is not a regulatory fee paid to a securities board like SEBI.

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