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Sagot :
The demands of its lenders and expectations of its equity holders is called capital cost required rate of return for a corporation is determined by averaging the rates it must provide to its lenders and investors. Capital costs.
The required return that a person or individual who provides capital for a business's start-up is expecting to receive, or the return that an investor is anticipating for investing in a business, can be characterised as the cost of capital. The estimated rate of return that a business or organisation must give to its lenders and investors is therefore known as the cost of capital.The shares that are issued to a company's founder when they relinquish control of it as part of the purchase agreement provided by the business that acquires it are known as founder's shares.
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