cost of capital Synonyms
No Synonyms and anytonyms found
cost of capital Meaning
cost of capital (n)
the opportunity cost of the funds employed as the result of an investment decision; the rate of return that a business could earn if it chose another investment with equivalent risk
cost of capital Sentence Examples
- Understanding the cost of capital is essential for businesses to make informed financial decisions.
- Calculating the cost of capital involves determining the weighted average of a company's debt and equity.
- High borrowing rates can significantly impact a company's cost of capital.
- Lowering the cost of capital can increase a company's profitability and competitiveness in the market.
- Investors often assess a company's cost of capital to evaluate its investment potential.
- Changes in interest rates can influence the cost of capital for both debt and equity financing.
- Effective management of the cost of capital can enhance a company's ability to fund growth opportunities.
- Analyzing the cost of capital helps companies decide whether to undertake new projects or investments.
- A company's cost of capital may vary depending on the industry it operates in and its risk profile.
- Evaluating the cost of capital is crucial for determining the appropriate discount rate for future cash flows in investment appraisal.
FAQs About the word cost of capital
the opportunity cost of the funds employed as the result of an investment decision; the rate of return that a business could earn if it chose another investment
No synonyms found.
No antonyms found.
Understanding the cost of capital is essential for businesses to make informed financial decisions.
Calculating the cost of capital involves determining the weighted average of a company's debt and equity.
High borrowing rates can significantly impact a company's cost of capital.
Lowering the cost of capital can increase a company's profitability and competitiveness in the market.
