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What does Cost of Capital mean?

The rate of return that a company must earn on an investment project to at least cover its financing costs.

Cost of Capital in a sentence
A project is only worthwhile if its expected return exceeds its cost of capital.

Cost of Capital in German, French, Spanish and Italian

German
Kapitalkosten

Besteht meist aus Fremdkapital- und Eigenkapitalkosten (WACC).

French
Coût du capital

Taux de rentabilité minimal qu'un investissement doit dégager.

Spanish
Costo de capital
also Coste de capital

El rendimiento mínimo necesario para que un proyecto sea viable.

Italian
Costo del capitale

Rendimento atteso dagli investitori per il capitale fornito.

Common phrases with Cost of Capital

  • calculate cost of capital
  • minimize cost of capital
  • estimate cost of capital

Synonyms and opposites for Cost of Capital

  • Synonym Hurdle Rate

More Accounting terms

All accounting terms →

Cost of Capital is filed under