cost of capital
5
7.2
- noun
- Specialized
:
costo de capital
- When interest rates rise, the cost of capital for businesses typically increases as well.
- return exceeds the cost of capital
- increase the cost of capital
- lower the cost of capital
The first theory is that investing in positive or good companies will improve the world by raising the cost of capital for bad companies.
- The first theory is that investing in positive or good companies will improve the world by raising the cost of capital for bad companies.
- So the cost of capital goes down, investment in the fossil fuels which is peaking and declining, the cost of capital is going up.
- Our tax model finds that expensing is the most powerful engine for economic growth And and it, it, it helps lower the cost of capital investment.
Examples
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Apple would have a much lower cost of capital and much greater visibility as to its future plans.
Blog text (26) -
We use each utility's real after-tax cost of capital as the discount rate for its programs.
Academic text (1992) -
And so things change, the cost of capital changes.
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You just need to be aware of the cost of capital for the investors you pitch.
Blog text (6) -
You have to make enough of a profit that you cover your cost of capital.
Blog text (24) -
At the margin, the cost of capital should equal the return on capital.
Academic text (2005) -
So clearly, if the trend does not reverse itself, the cost of capital for business investments will continue to increase.
Academic text (1995) -
An investment is selected as long as the internal rate of return exceeds the cost of capital.
Academic text (1991) -
Pepperdine University has done an exhaustive study on the cost of capital for private business owners.
Blog text (24) -
Do you see a relationship between the after-tax cost of capital and house price to income ratios?
Blog text (6)
Synonyms
How much a business pays to use money for investment
Surface Forms
Morphology
The phrase is compositionally built from 'cost' and 'capital', so a learner who knows both words can infer it refers to expenses or the price associated with using funds or assets. However, the precise technical sense — a required rate of return or opportunity cost used in finance — is specialized and not fully predictable from the constituents for an average B1 learner, so it is only partially transparent.
Etymology
The phrase cost of capital comes from a simple image: cost is the price you pay and capital is the money or equipment a business uses. So the cost of capital is the 'price' a company must earn or 'pay' to use funds, which is why it shows the return a project needs to be worthwhile.