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
How To Use cost of capital In A Sentence
- The cost of capital is widely misunderstood.
- The high cost of capital has a crippling effect on many small American high-tech firms.
- He overrates devaluation as a remedy for the problems of southern Europe: loss of purchasing power, stagflation, erosion of confidence in the currency and consequent higher cost of capital are the side-effects which are unlikely to be offset adequately by improved export performance. Letters: Greek liabilities are a fraction of Lehman's
- George Hatsopoulos, the thermodynamicist who founded Thermoelectron Corp., has found his way to economist Dale Jor-genson and the concept of the cost of capital and introduced them to discussions of international competitiveness; he has also taken up with the Federal Reserve system as chairman of one of its regional banks. Economic Principals
- Indian companies are increasingly appreciating the greater relevance of cost of capital in running their businesses.
- Fast productivity growth in the sectors producing means of production ensured a rapid reduction in the real cost of capital goods.
- The high cost of capital has a crippling effect on many small American high-tech firms.
- Instead it went on a borrowing binge owing to a much lower cost of capital. Times, Sunday Times
- The cost of capital is widely misunderstood.
- As long as you're not already servicing more than $1 million in mortgage debt, your interest payments on up to $100,000 in equity loans are tax deductible, again bringing your aftertax cost of capital down to about 3.5%. Learning to Love Your Home Loan
