The average rate of interest a firm pays on its combination of debt and equity is known as:.

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04-03-2022
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The average rate of interest a firm pays on its combination of debt and equity is known as:.

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jayilych4real jayilych4real · Answer 1 · 2022-03-17T10:51:57+01:00

The average rate of interest a firm pays on its combination of debt and equity is known as

cost of capital

What is Capital?

This is one of the factors of production which is used to he;p finance a business by giving it the much needed boost to grow and expand.

With this in mind, we can see that the average rate of interest which a firm pays on its combination of debt and equity is known as the cost of capital as it used to offset net deficits.

Read more about cost of capital here:

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