Which of the Following Statements Holds True for Cost of Capital

Multiple Choice

Which of the following statements holds true for cost of capital?

A) It refers to the process of financing long-term outlays for major projects such as plant expansion, entry into new markets, or research and development.
B) It refers to raising capital by borrowing the money and agreeing to repay the entire amount plus agreed-upon interest at a specific date in the future.
C) It refers to a process that lets the customer buying the goods or services defer payment on the good or services for a specified period of time, typically thirty or ninety days.
D) It refers to a set of procedures used to estimate the economic value of an owner's interest in a business.
E) It refers to the rate of return that a company could earn if it chose a different investment of equivalent risk.