Cost of capital

Cost of capital,

Definition of Cost of capital:

  1. Cost of debt and equity capital acquired from different sources. See also composite cost of capital.

  2. 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.

How to use Cost of capital in a sentence?

  1. The cost of capital must be taken into account when planning business expansion; without careful planning, a business could miss out on more lucrative investments opportunities.
  2. If you want to figure out how much profit you may earn that year you need to know what your cost of capital was.
  3. If you want to figure out if a new project is worth taking on the first thing you must do is find its cost of capital .

Meaning of Cost of capital & Cost of capital Definition

Cost Of Capital,

What is The Meaning of Cost Of Capital?

  1. The cost of capital is the rate of return required for an investment budgeting project, such as B is the cost of building a new factory. When analysts and investors discuss the cost of equity, they usually refer to the average cost of the company's debt and the value of the joint venture's equity.

    • The cost of capital represents the rate of return at which a company has to start an investment plan, such as the purchase of new equipment or the construction of a new building.
    • The value of equity usually includes the value of equity and debt, which is weighed according to the company's current or preferred capital structure, called the average value of equity (WACC).
    • The decision of the company to invest in a new project will always have to be more profitable than the cost of capital used by the company to finance the project, otherwise the project will not return to the investors.

  2. How much money is needed to create a valuable investment budget?

  3. Cost Of Capital means: If she chooses another investment with the same risk, she can get a return.

Literal Meanings of Cost Of Capital

Cost:

Meanings of Cost:
  1. Payment (an amount of money) is required before receiving or performing (an item or action).

Sentences of Cost
  1. The price of each issue of the magazine is 25 2.25

  2. Your job is to plan and calculate the cost of the media program for the campaign.

Synonyms of Cost

fare, put a value on, estimate the cost of, be valued at, hire charge, evaluate, price, charge, levy, put a price on, amount to, come to, fetch, toll, estimate the price of, sell for, be, put a figure on, market price, be priced at, value, tariff, rental

Of:

Meanings of Of:
  1. It shows the relationship between the part and the whole.

  2. Indicates the relationship between scale or size and value.

  3. Refers to the relationship between two organizations, usually the organization of the association.

  4. It shows the relationship between the address and the reference point.

  5. Describe the relationship between a general category or type and the specific category that falls into that category.

  6. After the noun which is related to or related to the verb

  7. The title of the sentence is a predictive adjective.

  8. Identify the component or substance that makes the difference.

  9. Express the hour for the next hour.

Sentences of Of
  1. 5% increase

  2. North of Chicago

  3. Nice to meet you

  4. In New York, only a quarter to three

Synonyms of Of

done by, in, of, carried out by, by, caused by, from, made by

Capital:

Meanings of Capital:
  1. The central city or municipality of a country or region is usually the seat of its governmental and administrative center. Places, more than others, are associated with certain activities or products.

  2. Assets in the form of cash or other assets associated with a person or organization or available or provided for a specific purpose, e.g. B. To start a business or to invest.

  3. Letters of any size and shape that start sentences and names.

  4. Death penalty (for crime or charges)

  5. (One letter of the alphabet) Large and shaped to start sentences and nouns.

  6. Exceptional.

  7. It is used to express approval, satisfaction or happiness.

  8. Another section, usually wider, at the top of the column or column.

Sentences of Capital
  1. Warsaw is the capital of Poland

  2. Too much return on investment capital

  3. Write the name in capital letters

  4. Murder is a great crime

  5. Assuming the work can be published, my name will appear on it along with a capital N with some names.

  6. The column was capitalized

Synonyms of Capital

most important city, finance, upper-case letter, funds, centre of administration, upper-case, deep pockets, block, reserves, capital letter, block capital, wealth, assets, principal, the means, resources, the wherewithal, first city, money, stock, finances, seat of government