Which of the following is an example of implicit cost of capital ?
The cost of retained earnings is an implicit cost of capital. Retaining profits involves the opportunity cost of the return shareholders could have earned if those profits…
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Which of the following is an example of implicit cost of capital ?
Answer and explanation
Correct answer D
The cost of retained earnings is an implicit cost of capital. Retaining profits involves the opportunity cost of the return shareholders could have earned if those profits had been distributed and invested elsewhere.
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Uttarakhand SET (USET)