Cost Of Capital
Capital is a term used in the field of financial investment to refer to the cost of a company's funds (both debt and equity), or, from an investor's point of view "the shareholder's required return on a portfolio company's existing securities". It is used to evaluate new projects of a company as it is the minimum return that investors expect for providing capital to the company, thus setting a benchmark that a new project has to meet.
Read more about Cost Of Capital: Summary, Cost of Debt, Cost of Equity, Weighted Average Cost of Capital, Capital Structure, Modigliani-Miller Theorem
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