cost of capital


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Related to cost of capital: Cost of equity, Capital structure, Cost of debt
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Noun1.cost of capital - 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
opportunity cost - cost in terms of foregoing alternatives
References in periodicals archive ?
Unlike the second of these proposals, the first and third may significantly effect the cost of capital.
Having a lower cost of capital means that their company can take over others and not be taken over.
The cost of capital can easily be shown by the example of the purchase of a car.
Current Issues in Estimating Cost of Capital (September 17, 2015) Roger Grabowski examines the state of cost of capital determination.
In its final determination on the issue, the TRA yesterday said the cost of capital is a vital parameter that affects the cost base of operators and the price paid by consumers for telecoms services, reported the Gulf Daily News, our sister publication.
In its final determination on the issue, the Telecommunications Regulatory Authority (TRA) yesterday said the cost of capital is an important parameter that affects the cost base of operators and the price paid by consumers for telecommunications services.
The lower cost of capital is crucial to Sleep Innovations, Thompson said.
1 Prepare a presentation for Williams regarding the concept of a firm's weighted average cost of capital (WACC).
In other words, a manager accepts marginal investments that return less than the cost of capital to facilitate larger and more valuable future investments when earnings stochastically improve.
Thus it is very much imperative that every successful industrial organization must pay adequate consideration to the vital question of financial leverage, cost of capital, and value of firm.
The purpose of this article is to illustrate how the cost of capital may be incorporated into CVP analysis.
Companies with poor internal controls tend to have poorer quality financial information, which indicates problems to investors, which causes the market to assess a higher cost of capital.