COST OF CAPITAL

Pronunciation (US):

(GB):

IPA (US):

 Dictionary entry overview: What does cost of capital mean? 

• COST OF CAPITAL (noun)
  The noun COST OF CAPITAL has 1 sense:

1. 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

  Familiarity information: COST OF CAPITAL used as a noun is very rare.

 Dictionary entry details 

• COST OF CAPITAL (noun)

Sense 1

Meaning:

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

Classified under:

Nouns denoting possession and transfer of possession

Synonyms:

capital cost; cost of capital

Hypernyms ("cost of capital" is a kind of...):

opportunity cost (cost in terms of foregoing alternatives)