cost of capital


Also found in: Thesaurus, Financial, Acronyms, Wikipedia.
Related to cost of capital: Cost of equity, Capital structure, Cost of debt
ThesaurusAntonymsRelated WordsSynonymsLegend:
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
Based on WordNet 3.0, Farlex clipart collection. © 2003-2012 Princeton University, Farlex Inc.
References in periodicals archive ?
It does not cover its full costs until reported profits exceed its cost of capital. Until a business returns a profit that is greater than its cost of capital, it operates at a loss.
The risk factor is computed by taking the difference between the stock's cost of capital of 7.8 percent and long-term growth rate of 6 percent.
where [rho] is the cost of cost of capital, r the discount rate, [delta] the rate of economic depreciation, [pi] the rate of inflation, u the statutory corporate income tax rate, and z the net present value of depreciation deductions per dollar of investment.
Lowering the allowed cost of capital will reduce the water companies' cash-flow generation ability despite the recent rise in UK inflation.
The cost of capital has also been proposed as an explanation for the dwindling of U.S.
As a consequence, the cost of capital in case of bank financing (interest) is tax deductible, whereas the cost of equity (dividend) is not.
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.
One of the many points that I made was that the cost of capital has to be cut down.
At the international level research AEM Effect on cost of capital, but the capital cost has been paid to the influence of REM.
In addition to lowering the cost of capital, the program lowers financial leverage as a result of a higher mix of equity-like securities in the capital structure and lengthens the insurer's maturity profile.
The report reveals the life insurance industry's return less the cost of capital barely hovered in positive territory during the periods of 1985-1993 (1.6 percent) and 1994-2002 (0.6 percent).