Minimum Rate of Return that a firm must earn in order to satisfy its investors is also known as ...........

Principles of Accounting & Financial Management Cost of capital

Download Solution PDF

Minimum Rate of Return that a firm must earn in order to satisfy its investors, is also known as:

Average Return on Investment

Weighted Average Cost of Capital

Net Profit Ratio

Average Cost of borrowing.

छोटे Courses बड़े Results

Master Cost of capital

Prepare through Micro-courses

Try Now

Explanation:

Answer :- Weighted Average Cost of Capital
The weighted average cost of capital (WACC) is the rate that a company is expected to pay on average to all its security holders to finance its assets. The WACC is commonly referred to as the firm's cost of capital. Importantly, it is dictated by the external market and not by management.