The required return for a capital budgeting project.

  The rate of return a utility must offer to obtain additional funds. The cost of capital varies with the leverage ratio, the effective income tax rate, conditions in the bond and stock markets, growt [..]

The rate of return that suppliers of capital require as compensation for their contribution of capital.

The cost to borrow or invest capital.

Cost of capital is a concept used in investment appraisal to evaluate new projects.  It is the minimum return investors expect for providing capital to a company, therefore the return on capital from [..]

The cost incurred by a firm to raise additional funds. Depends on the interest rate and taxes that it faces, as well as its ability to raise funds by issuing equity.

Definition The opportunity cost of an investment; that is, the rate of return that a company would otherwise be able to earn at the same risk level as the investment that has been selected. For exampl [..]

An economic concept that may be defined in various ways. 1) A discounted rate equating the market value of securities with the current value of cash flows to the security owners. 2) A discount rate eq [..]

Rate of return that a business could earn if it chose another investment with equivalent risk.

The cost to borrow or invest capital.

The composite cost to the utility of interest on debt, dividends on preferred stock, and earnings requirements of common stockholders, as calculated by the actual or projected costs of each times the [..]

Making a business successful is simply down to ensuring you earn more than your costs…

Return required on capital budgeting project. Percentage cost of funds used to finance the assets.

The cost of obtaining equity capital to be invested in long-term plant and equipment.  It is a weighted average of various debt and equity components.  The cost of capital allocation has two parts: 1) [..]

The weighted-average cost of the funds that a firm secured from both debt and equity sources in order to fund its assets. The use of a firm’s cost of capital is essential in making accurate capital bu [..]

The average cost to a company of the capital it uses in its operations. A company’s cost of capital will generally be made up of interest and finance costs (on loans, credit, etc.) and the remuneration of capital (dividends and other economic benefits paid to shareholders).

refers to the opportunity cost of making a specific investment. It is the rate of return that could have been earned by putting the same money into a different investment with equal risk. Thus, the co [..]

The weighted rate of return expected by the various parties financing the firm. Bondholders expect a return equivalent to the market interest rate on debt, while equity holders expect a return that is [..]

The minimum rate of return an organisation must earn on its investment.

The costs related to owning capital. These can be split into the cost of equity, hybrids and debt, taking a target leverage into account.

The expected rate of return (discount rate) that the market requires in order to attract funds to a particular investment.

The weighted average of the cost of various sources of capital, generally consisting of outstanding securities such as mortgage debt, preferred and preference stock, common stock, etc. and retained earnings.

The cost to borrow or invest capital.

The yield that a company must generate in order to meet investors' expectations regarding the return on their capital. It is possible to determine the cost of equity and the cost of debt and then [..]

The required return for a capital budgeting project.