Which of the following best describes a firm’s cost of capital? - 3785

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Which of the following best describes a firm’s cost of capital?

          a.   The average yield to maturity on debt

          b.   The average cost of the firm’s assets

          c.   The rate of return that must be earned on its investments in order to satisfy the firm’s investors

          d.   The coupon rate on preferred stock

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Which of the following best describes a firm’s cost of capital?