[amp_mcq option1=”cost of mortgage” option2=”cost of common equity” option3=”cost of stocks” option4=”cost of reserve assets” correct=”option3″]<\/p>\n
The correct answer is: C. cost of common equity.<\/p>\n
Cost of common equity is the return that a company must earn on its common equity in order to satisfy its investors. It is the cost of raising capital by issuing new shares of common stock.<\/p>\n
Cost of mortgage is the interest rate that a borrower pays on a mortgage loan. It is typically higher than the interest rate on a personal loan or a credit card, because mortgages are considered to be riskier loans.<\/p>\n
Cost of stocks is the return that an investor expects to earn on a stock. It is determined by a number of factors, including the company’s financial performance, its dividend policy, and the overall stock market conditions.<\/p>\n
Cost of reserve assets is the cost of holding assets that are not being used to generate income. These assets may include cash, marketable securities, and accounts receivable. The cost of reserve assets is typically equal to the interest rate that the company could earn on these assets if they were invested in another way.<\/p>\n
In conclusion, the cost of common equity is the return that a company must earn on its common equity in order to satisfy its investors. It is the cost of raising capital by issuing new shares of common stock.<\/p>\n","protected":false},"excerpt":{"rendered":"
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