Definitions for cost of capital
cost of cap·i·tal

Princeton's WordNetRate this definition:0.0 / 0 votes

1. cost of capital, capital costnoun

   the opportunity cost of the funds employed as the result of an investment decision; the rate of return that a business could earn if it chose another investment with equivalent risk

WikipediaRate this definition:0.0 / 0 votes

1. Cost of capital

   In economics and accounting, the cost of capital is the cost of a company's funds (both debt and equity), or from an investor's point of view is "the required rate of return on a portfolio company's existing securities". It is used to evaluate new projects of a company. It is the minimum return that investors expect for providing capital to the company, thus setting a benchmark that a new project has to meet.

WikidataRate this definition:0.0 / 0 votes

1. Cost of capital

   The cost of capital is a term used in the field of financial investment to refer to the cost of a company's funds, or, from an investor's point of view "the shareholder's required return on a portfolio company's existing securities". It is used to evaluate new projects of a company as it is the minimum return that investors expect for providing capital to the company, thus setting a benchmark that a new project has to meet.

Matched Categories

1. • Opportunity Cost

How to pronounce cost of capital?

1. Alex

   US English

   David

   US English

   Mark

   US English

   Daniel

   British

   Libby

   British

   Mia

   British

   Karen

   Australian

   Hayley

   Australian

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   Priya

   Indian

   Neerja

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   Zira

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   Oliver

   British

   Wendy

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   South African

How to say cost of capital in sign language?

Numerology

1. Chaldean Numerology

   The numerical value of cost of capital in Chaldean Numerology is: 8

2. Pythagorean Numerology

   The numerical value of cost of capital in Pythagorean Numerology is: 5

Examples of cost of capital in a Sentence

1. Evy Hambro:

   The weight of money flowing into products in this area, whether they are active or passive, will shift the cost of capital for companies.

2. Alex Rosen:

   I think Vouch has the potential to fundamentally lower the cost of capital for all consumers, vouch offers a unique consumer product that safely gives people much better rates on loans than they’ve ever had access to before.

3. Ian Simm:

   I can't see any upside for the energy sector of the UK coming out of the EU. The risk premium going up will increase the cost of capital, we have mostly run our power assets down over the past 25 years. Therefore, we do need investors to be confident enough to put their hands in their pockets and commit to the next wave of power plants.

4. Jonathan DeSimone:

   As an investor, we certainly value the trading liquidity that the established counterparties offer in our market, and we absolutely put a premium on those situations versus those where the deal is not going to trade to the same extent, we would expect cost of capital to be lower than for an instrument syndicated by an institution that hasn't invested as much in its trading platform.

5. Tommy Xie:

   We think China is unlikely to engineer 25% depreciation to counter the impact of tariff as the cost of capital outflows amid the shrinking current account surplus may outweigh the benefit of supporting export, the pressure on RMB depreciation may depend on three near-term factors including the size of China's retaliation package, U.S.'s plan to impose tariff on the remaining $325 billion products and market's assessment on whether the setback is temporary or not.

References

1. ^ Princeton's WordNet
   http://wordnetweb.princeton.edu/perl/webwn?s=cost of capital
2. ^ Wikipedia
   https://en.wikipedia.org/wiki/Cost_of_Capital
3. ^ Wikidata
   https://www.wikidata.org/w/index.php?search=cost of capital