Required rate of return on investment and cost of capital


Problem: In thinking about investments, especially capital investments by a firm, the cost of capital and especially the WACC is hugely important. What factors precisely determine the cost of capital for such investments, and what is the relationship between the required rate of return on an investment and is cost of capital? Give examples from your place of work.

Please explain in detail.

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Finance Basics: Required rate of return on investment and cost of capital
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