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HomeCA InterFinancial ManagementCost of Capital Basics › Cost of capital is also known as:

Cost of capital is also known as:

AHurdle rate
BBank rate
CBonus rate
DSurcharge rate
Answer & Solution
Correct answer: A. Hurdle rate
1. Cost of capital is the minimum required rate of return. 2. Also called cut-off rate, hurdle rate, or minimum rate of return. 3. Used as the discount rate for evaluating investments. _Source: ICAI BoS CA Inter Paper 6A, Ch 4 "Cost of Capital", §2_
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