Which cost takes into account the return demanded on the firm's equity and the amount the firm must pay on its debt?

A) Cost of capital
B) Obsolescence (spoilage) cost
C) Handling cost
D) Occupancy cost

Cost Of Capital

The expense of obtaining funds or capital, through debt or equity, to finance an investment or project.

Firm's Equity

The value of a company's shares owned by its shareholders, representing ownership interest in the company.

Firm's Debt

The total amount of money that a company owes to creditors, encompassing both short-term and long-term liabilities.