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Cost of Capital

The cost of capital refers to the cost of using money to finance a business or other venture. It includes the interest that must be paid on loans and the return that must be earned on investment to make it worthwhile for investors to provide the capital. Continue Reading Below

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Encyclopedia Articles

Discover the definition of financial terms related to cost of capital.

Account Analysis: Techniques, Interpretation, and Applications Thumbnail

Account Analysis: Techniques, Interpretation, and Applications

Rasana Panibe

Corporate Capital: Definition, Types, and Examples Thumbnail

Corporate Capital: Definition, Types, and Examples

Dan Agbo

Analyzing the Long-Term Debt to Capitalization Ratio: Definition, Calculation, and Implications Thumbnail

Analyzing the Long-Term Debt to Capitalization Ratio: Definition, Calculation, and Implications

Abi Bus

What is Unlevered Cost of Capital? Explained with Calculation, Examples, and Considerations Thumbnail

What is Unlevered Cost of Capital? Explained with Calculation, Examples, and Considerations

Abi Bus

Country Risk Premium (CRP): Unveiling the Risks and Rewards in International Investing Thumbnail

Country Risk Premium (CRP): Unveiling the Risks and Rewards in International Investing

SuperMoney Team

Traditional Theory Of Capital Structure: Definition, Dynamics, And Applications Thumbnail

Traditional Theory Of Capital Structure: Definition, Dynamics, And Applications

Dan Agbo

Material Weakness: Understanding, Examples, and Proactive Measures Thumbnail

Material Weakness: Understanding, Examples, and Proactive Measures

SuperMoney Team

Optimal Capital Structure: What It Is, How to Calculate, and Real-World Examples Thumbnail

Optimal Capital Structure: What It Is, How to Calculate, and Real-World Examples

Abi Bus

Reverse Auctions Explained: The Secret Weapon of Smart Buyers Thumbnail

Reverse Auctions Explained: The Secret Weapon of Smart Buyers

Silas Bamigbola

Financial Structure: Types, Examples, and Optimization Thumbnail

Financial Structure: Types, Examples, and Optimization

SuperMoney Team

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Learn About Cost of Capital

Thumbnail for Blog Article: Home Equity or Personal Savings for Business: Which Is the Smarter Risk?

Home Equity or Personal Savings for Business: Which Is the Smarter Risk?

Andrew Latham

Thumbnail for Blog Article: LendKey Student Loan Refinancing Increases Variable Rates to Range from 4.76% to 7.86% (March 2023)

LendKey Student Loan Refinancing Increases Variable Rates to Range from 4.76% to 7.86% (March 2023)

SuperMoney Team

About Cost of Capital

The cost of capital refers to the cost of using money to finance a business or other venture. It includes the interest that must be paid on loans and the return that must be earned on investment to make it worthwhile for investors to provide the capital.