Cost of Capital

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A Cost of Capital is an cost of investment capital.



References

2015

  • (Wikipedia, 2015) ⇒ http://en.wikipedia.org/wiki/Cost_of_capital Retrieved:2015-3-21.
    • In 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 "the required rate of return on a portfolio company's existing securities". [1] 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.
  1. Brealey, Myers, Allen. “Principles of Corporate Finance", McGraw Hill, Chapter 10

2014