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Cost of capital refers to the minimum rate of return that a firm must earn on its investment projects to maintain the market value of its shares and satisfy the expectations of its investors. In financial management, it represents the cost incurred by a company in raising funds from various sources such as equity shares, preference shares, debentures, bonds, and retained earnings. It is essentially the opportunity cost of ____ _________ ____ _________ ____ ___ _____.
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