[amp_mcq option1=”Flotation Cost” option2=”Dividend” option3=”Required Rate of Return” option4=”None of the above” correct=”option4″]<\/p>\n
The correct answer is: D. None of the above.<\/strong><\/p>\n Cost of capital is the rate of return a company must earn on its investments in order to satisfy its investors. It is the minimum return that a company must earn on its investments in order to remain financially viable.<\/p>\n Flotation cost is the cost of issuing new shares of stock. It includes the fees paid to investment bankers and lawyers, as well as the cost of printing and distributing the new shares.<\/p>\n Dividend is a payment made by a company to its shareholders out of its profits. The amount of the dividend is typically determined by the board of directors and is paid out on a per-share basis.<\/p>\n Required rate of return is the rate of return that investors expect to earn on their investment in a company. It is determined by a number of factors, including the risk of the investment, the expected return on other investments, and the investor’s risk tolerance.<\/p>\n In conclusion, cost of capital is not the same as flotation cost, dividend, or required rate of return. It is a separate concept that is used to determine the minimum return that a company must earn on its investments in order to remain financially viable.<\/p>\n","protected":false},"excerpt":{"rendered":" [amp_mcq option1=”Flotation Cost” option2=”Dividend” option3=”Required Rate of Return” option4=”None of the above” correct=”option4″]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[945],"tags":[],"class_list":["post-51841","post","type-post","status-publish","format-standard","hentry","category-financial-management","no-featured-image-padding"],"yoast_head":"\n