1. ____________ is the cost to the business of keeping its owners sufficiently satisfied to remain as owners. It is the minimum rate of return on equity that owners must receive from the business in the form of ordinary income and capital gains.
Cost of equity
Cost of capital
Cost of debt
nominal interest rate
inflation
2. ____________ can be estimated by dividing the total amount that a business has paid in interest by the average total liabilities for the same period under consideration.
inflation
Cost of equity
nominal interest rate
Cost of capital
Cost of debt
3. ____________ is the number of years that it takes the sum of the net cash flows to equal or exceed the net cash outlay.
IRR
NPV
B/C ratio
simple rate of return
payback period
4. The ____________ equals the annual net income provided by an asset divided by the initial cost to acquire the asset.
internal rate of return
nominal rate of return
real rate of return
simple rate of return
inflation rate