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 ?
As a consequence, the cost of capital in case of bank financing (interest) is tax deductible, whereas the cost of equity (dividend) is not.
5 percent but this time, the return on capital of D and L will be made equal to its cost of capital at 10.
The STBs affirmation of a multiple-model approach will have important implications for the many regulatory proceedings in which the railroad industry cost of capital is a factor.
pharmaceutical, development, cost of capital, opportunity cost
This new publication includes data through December 2013 and March 2014 and builds on the same rigorous country-level cost of capital analysis previously published in the discontinued Morningstar/Ibbotson international reports.
Its cost of capital was lower and investors perceived it as a more stable and profitable sector.
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.
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.
The lower cost of capital is crucial to Sleep Innovations, Thompson said.
The purpose of the paper is to support the thesis that insurance may reduce the cost of capital in a company by influencing both the cost of particular capital structure components and the volume of particular sources of funds.
Porras says that the cost of capital is the rate of return the market requires to commit capital to an investment, being tied to the risk of the investment project (the cost of capital to a firm is the return investors receive from lending their savings).
This study investigates investor reaction to distribution changes using the implied unit cost of capital as an inverse measure of valuation in this sector of the Canadian market place.