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
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
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
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.
Freebase
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
Numerology
Chaldean Numerology
The numerical value of cost of capital in Chaldean Numerology is: 8
Pythagorean Numerology
The numerical value of cost of capital in Pythagorean Numerology is: 5
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"cost of capital." Definitions.net. STANDS4 LLC, 2023. Web. 29 Nov. 2023. <https://www.definitions.net/definition/cost+of+capital>.
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