cost of capital
Definition 1
Opportunity cost of funds employed in a business; the rate of return investors could earn if an alternative investment avenue (usually time deposit) was chosen.
Definition 2
Cost of debt and equity capital acquired from different sources. See also composite cost of capital.
cost of capital is in the Accounting & Auditing subject.
cost of capital appears in the definitions of the following terms: economic value added (EVA), terminal value, inventory carrying cost, Modiglani-Miller hypothesis, return on investment (ROI), finance charges, law of proportions, calculated intangible value (CIV), present value (PV) and discount rate
cost of capital appears in the other terms: composite cost of capital, opportunity cost of capital, weighted average cost of capital
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