Economics · Cost of Capital
What is considered a primary misconception surrounding the Cost of Capital in financial management?
Verified Solution4 OptionsUpdated: October 2026👁️1 View
Share:
- 1The Cost of Capital is solely determined by market interest rates.
- 2The Cost of Capital is equivalent to the marginal cost of capital.
- 3The Cost of Capital is merely the interest rate paid on term loans.✓
- 4The Cost of Capital should be the hurdle rate for evaluating all new projects.
Correct answer
The Cost of Capital is merely the interest rate paid on term loans.
Download Single Question PDF
Save this question and verified answer as a clean study sheet with live clickable link.
👥
Share with Friends & Study Groups
Challenge your peer aspirants on WhatsApp or Telegram to solve this question!
Online Test Series
Start Free Mock Test →Preparing for Economics?
Practice full-length mock tests with real exam timers, instant score analysis, and all-India ranking.
Chapter Practice
Practice Cost of Capital MCQs →Want more practice questions on Cost of Capital?
Solve complete topic-wise tests with detailed solutions on GkGet.
Related Practice Questions
Recommended practice questions in Economics · Cost of Capital