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cost of capital

   Also found in: Financial, Acronyms, Wikipedia 0.01 sec.
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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


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MANAMA: The Telecommunications Regulatory Authority (TRA) yesterday issued a Determination which sets the cost of capital for Batelco and Zain's regulated telecommunications services at 9.
Byline: Manama Bahrain's Telecommunications Regulatory Authority (TRA) has issued a Determination which sets the cost of capital for Batelco and Zain's regulated telecommunications services at 9.
This would not normally be a relevant cash flow in an NPV analysis, because the cost of debt is part of the weighted-average cost of capital that's used to discount the cash flows back to a present value.
 
 
 
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