Question

The rate of return on its existing assets that a firm must earn to maintain the...

The rate of return on its existing assets that a firm must earn to maintain the current value of the firm's ordinary shares is called the:


a.

weighted average cost of equity.

b.

internal rate of return.

c.

weighted average cost of capital.

d.

return on equity.

e.

current yield.

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Answer #1

the rate of return on its existing assets that a firm must earn to maintain the current value of the firm's ordinary shares is called:-

c) weighted average cost of capital

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