Given perfect competition in the capital market, the opportunity cost of capital is adequately reflected by the?

PuertoSans

9 years ago

Here is an explanation:

Cost of capital refers to the opportunity cost of making a specific investment. It is the rate of return that could have been earned by putting the same money into a different investment with equal risk.

REF: http://www.investinganswers.com/financial-dictionary/stock-valuation/cost-capital-112