| Cost of Capital | |
 The required return necessary to make a capital budgeting project worthwhile, such as building a new factory. Cost of capital would include the cost of debt and the cost of equity. |
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 The cost of capital determines how a company can raise money (through a stock issue, borrowing, or a mix of the two). This is the rate of return that a firm would receive if they invested their money someplace else with similar risk. |
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 Cost Of Capital - A short article explaining different costs of capital and their measurement. Analytical Process for WACC and Capital Structure - An academic paper by Ruben Cohen on the WACC curve locating the optimal capital structure. |
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Related Terms
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