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Cost of capital

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Cost Of Capital
Business / Finance / Cost Of Capital: Refers to over-the-counter trading. 'The price I must pay to obtain the securities you wish to buy is [$]'. Usually, a standard markup (1/8) is then applied for resale to this buyer.



Financial Terms Canada -
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 ...

Cost Of Capital
An economic concept that may be defined in various ways. 1) A discounted rate equating the market value of securities with the current value of cash flows to the security owners. 2) A discount rate equating market value of ...


The is the rate of return that providers of capital demand to compensate them for both the time value of their money, and risk.

Cost of Capital Model
Definition
A way of estimating the required rate of return on a business investment such as small business ownership.

(COC)
the weighted average cost of the
various sources of funds (debt and stock) that comprise a
firm's financial structure ...

The Cost of Capital is the cost a firm incurs from financing through debt and Equity . From a shareholder's standpoint the cost of capital is the required rate of return in the market for an Investment of equal risk.

Definition of

Treasury Management
interest paid on operating capital interest paid on the capital used in operating a business ...

cost of capital
rate of return that is necessary to maintain market value (or stock price) of a firm, also called a hurdle rate, cutoff rate,or minimum required rate of return.

Average
Average definition :
A firm's required payout to bondholders and stockholders expressed as a percentage of capital contributed to the firm.

Cost of capital
The required return for a capital budgeting project.
Cost of funds
Interest rate associated with borrowing money.

AVERAGE - A firm's required payout to bondholders and stockholders expressed as a perce...
AVERAGE DAILY BALANCE - The interest you owe on your credit card or earn on a saving account may be cal...

See also: Cost of Capital, Cost of Equity, Debt, Discount Rate, Equity, Market Value
? Mentioned in
Economic Spread
Shareholder Value Added - SVA ...

Incremental
Financial & Investment Dictionary:
Incremental
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What is the cost of capital?
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Weighted Average (WACC) Question with Expected Return Model
Weighted Average (WACC) Question with Dividend Growth Model ...

Beta coefficient
Cost of capital
Discounted cash flow
Economic Value Added
Internal rate of return
Minimum acceptable rate of return
Modigliani-Miller theorem
Net present value
Opportunity cost ...

Dictionary Finance A Average
Finance Dictionary - A Terms
Share ...

Cost of capital
Measures the opportunity cost incurred by a company for holding the level of required capital.

. For any given level of corporate risk, the faced by f1rn1s in a given country --a key element of their competitiveness --is essentially determined by four factors: (1) interest rates, or the cost of borrowing, ...

Cost of Capital The weighted average cost for long-term funds raised by a company from different sources such as term loans, DEBENTURES/BONDS, PREFERENCE SHARES, EQUITY SHARES and retained earnings.

: The rate a company must pay investors to induce them to invest in the company's equity or debt.
Cost of Risk: The cost associated with the risk of a particular event happening.

Cost of capital
The amount a firm must pay the owners of CAPITAL for the privilege of using it. This includes INTEREST payments on corporate DEBT, as well as the dividends generated for shareholders.

The rate that must be earned by the company to satisfy all the firm's providers of capital. It is based on the opportunity cost of funds.
Coupon Interest payment on debt.

Cost of Capital
The cost of alternative sources of financing to a business.
Currency Risk Sharing ...

Average
Average Payout required to be made by a firm to stockholders and bondholders, expressed in terms of a percentage of the contribution of capital.

Cost of Capital
The rate of return required by providers of capital. Providers of capital include banks and investors.
Credit ...


How to Ace Your First Test Managing Real Money in the Real World: As a teen, you're beginning to make some grown-up decisions about how to save and spend your money.

Cost of capital
The cost of capital is the minimum acceptable rate of return (usually on an after-tax basis) required by the management of the firm to be earned by a capital expenditure. In making this determination, the level of risk is considered.


The required return necessary to make a capital budgeting project, such as building a new factory, worthwhile. includes the cost of debt and the cost of equity.

ACCR
Annual Cost of Capital Recovery
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Opportunity cost of capital
Expected return that is foregone by investing in a project rather than in comparable financial securities.
Opportunity costs ...

Unlevered Cost of Capital - An evaluation that uses either a hypothetical or actual debt-free scenario when measuring the cost to a firm to implement a particular capital project.

Opportunity cost of capital:
The expected return which is foregone when funds are invested in a project rather than in financial securities with a comparable level of risk.

Opportunity cost of capital The normal rate of return or the available return on the next-best alternative investment. Economists consider this a cost of production, and it is included in our cost examples.

Average A firm's required payout to the bondholders and to the stockholders expressed as a percentage of capital contributed to the firm.

One element that has to be considered is a company's cost of capital. The cost of capital is a weighted average cost of debt and equity. You might think of the cost of capital as the cost of money.

In the context of investing, refers to the average cost of shares or stock bought at different prices over time.
Average ...

What Is Marginal Cost of Capital?
What Is Short Run Marginal Cost?
What Is the Significance of Differential Cost?

Weighted average (WACC)
Expected return on a portfolio of all a firm's securities. Used as a hurdle rate for capital investment.

See also: See also: Average cost of capital, Sector, Acquisitions, Capital markets, Mergers

Business  Cost management  Cost of carry

 
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