What is the cost of capital?

Discover what the cost of capital is, how it represents the return required to make an investment worthwhile, and its importance in financial decision-making.

What is the cost of capital?
Lachlan May-04-2023 07:30:42
Viewed 267 times

1 Answer

1
Cost of capital is an economic concept that refers to the rate of return that the owners of a business, or investors, require in order to invest in the company. It is expressed as either an interest rate or as a percentage of the total amount of capital invested. The overall cost of capital helps to determine whether or not a business idea or venture is viable financially, since any project must generally generate a return greater than the cost of capital in order for it to be profitable.
avatar
Sana
8 Ques 1 Ans
answered 22 Aug 2023

Your Answer

undraw-questions

Login or Create Account to answer this question.

Do you have any opinion about What is the cost of capital??

Login / Signup

Answers Adda Q&A communities are different.
Here's how

bubble
Knowledge sharing.

Question and answer communities are a great way to share knowledge. People can ask questions about any topic they're curious about, and other members of the community can provide answers based on their knowledge and expertise.

vote
Engagement and connection

These communities offer a way to engage with like-minded individuals who share similar interests. Members can connect with each other through shared experiences, knowledge, and advice, building relationships that extend beyond just answering questions..

check
Community building.

Answers Adda Question & Answer communities provide a platform for individuals to connect with like-minded people who share similar interests. This can help to build a sense of community and foster relationships among members.