Concept information
Preferred term
cost of capital
Definition
- A company's cost of capital is the rate of return it requires to undertake a new project that is of the same riskiness as the existing business. It is calculated as an average of the costs of the various sources of financing it uses. [Source: Encyclopedia of Health Care Management; Cost of Capital]
Broader concept
Belongs to group
URI
https://concepts.sagepub.com/social-science/concept/cost_of_capital
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