cost of capital

cost of capital
The rate of *return a corporation must pay for the *capital used to finance its activities. As capital in its widest sense is drawn from various forms of *debt and *equity (*common stock, *preferred stock, and *retained earnings), the cost of capital is usually a *weighted average of the costs of the individual sources of capital. A corporation’s cost of capital is normally expressed as a percentage, and it is often used as a *hurdle rate in *discounted cash flow analysis and other investment appraisal techniques: A proposed investment’s anticipated *return must exceed a corporation’s cost of capital if it is to be accepted. See also *internal rate of return.

Auditor's dictionary. 2014.

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  • cost of capital — kapitalo kaina statusas T sritis Gynyba apibrėžtis Suma, kurios atsisako organizacija nepasirinkdama alternatyvaus investavimo su lygiaverte rizika. atitikmenys: angl. cost of capital ryšiai: susijęs terminas – alternatyviosios sąnaudos šaltinis… …   Lithuanian dictionary (lietuvių žodynas)

  • cost of capital — kapitalo kaina statusas T sritis turto vertinimas apibrėžtis Numatoma grąžos norma rinkoje, reikalinga lėšoms tam tikrai investicijai pritraukti. atitikmenys: angl. cost of capital ryšiai: susijęs terminas – grąžos norma šaltinis Tarptautiniai… …   Lithuanian dictionary (lietuvių žodynas)

  • cost of capital — cost of raising money, money paid in order to maintain methods of income …   English contemporary dictionary

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