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