What is the meaning of cost of capital?

noun

  • 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.
WordNet 3.0 © 2006 by Princeton University
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APAWordNet. (2010). cost of capital. Retrieved September 27, 2026, from http://smartdefine.org/cost_of_capital/definitions/1242740
ChicagoWordNet. 2010. "cost of capital" http://smartdefine.org/cost_of_capital/definitions/1242740 (accessed September 27, 2026).
HarvardWordNet 2010, cost of capital, Smart Define, viewed 27 September, 2026, <http://smartdefine.org/cost_of_capital/definitions/1242740>.
MLAWordNet. "cost of capital" 23 October 2010. Web. 27 September 2026. <http://smartdefine.org/cost_of_capital/definitions/1242740>
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