Cost 9f capital - Study guides, Class notes & Summaries

3 components of interest rate, or required rate - opportunity cost, risk, and inflation 3 different names used for interest rate - discount rate, required rate, cost 9f capital compound interest - interest earned on both the principal amount and any interest already earned Inflation - is the rate at which the average price level of goods and services increases Interest rate is also called - required rate of return when it refers to the compensation that an investor or lender will accept for...