Cost of capital

In business and finance, the cost of capital is the cost of obtaining funds for, or, conversely, the required return necessary to meet its cost of financing a capital budgeting project. Said another way, it is “the minimum return that a company should make on its own investments, to earn the cash flow out of which investors can be paid their return.

Leave a Reply

Your email address will not be published. Required fields are marked *

one × three =