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

Content Types

Related Topics

Encyclopedia Articles

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

Incremental Cost of Capital: Definition, Examples, and Optimization

Silas Bamigbola

What Is Financing In Business And Why It Matters?

Allan Du

What Is the Opportunity Cost of Capital?

Taylor Marks

Return on New Invested Capital (RONIC): Definition, Calculation, and Application

Alessandra Nicole

Required Rate of Return (RRR): Definition With Examples

Silas Bamigbola

Backflush Costing: How It Streamlines Finances with Risks & Rewards

Silas Bamigbola

Foregone Earnings: Definition, Examples, and Implications

Dan Agbo

The Modigliani-Miller Theorem (M&M): Market Value Determination, Application, and Considerations

Alessandra Nicole

Adjusted Present Value (APV): Definition, Calculation, And Examples

Dan Agbo

Takedown: Definition, Examples, and Implications

Silas Bamigbola

Page 3 of 4

Previous 1 2 3 4 Next

Learn About Cost of Capital

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

Andrew Latham

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.