What does Cost Of Capital mean?

Definitions for Cost Of Capital
cost of cap·i·tal

This dictionary definitions page includes all the possible meanings, example usage and translations of the word Cost Of Capital.

Princeton's WordNet

  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

Wikipedia

  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.

ChatGPT

  1. cost of capital

    Cost of capital refers to the required return a company or investor needs to generate in order to proceed with a prospective investment. It is essentially the opportunity cost of investing resources into one sector over another. In simpler terms, it is the rate of return a firm needs to earn on its investment projects to maintain its market value and attract funds. The cost of capital can encompass all of the company's funding sources, including both debt and equity.

Wikidata

  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.

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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. Walter Stoeppelwerth:

    There is a line forming, everybody wants a lower cost of capital.

  2. 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.

  3. 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.

  4. Alan Price:

    This devaluation is just the latest attempt to support Chinese industry at the expense of producers in the rest of the world who have to earn their cost of capital to survive.

  5. Darrell Bishop:

    The premium go-to names within this space are utilizing their balance sheets and cost of capital to take advantage of asset deals that would probably not normally be available, they are low decline, free-flowing top assets.

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"Cost Of Capital." Definitions.net. STANDS4 LLC, 2024. Web. 24 Apr. 2024. <https://www.definitions.net/definition/Cost+Of+Capital>.

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