Cost of capital/Definition: Difference between revisions

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The weighted average of the interest rates paid by a company on its equity (share issue) and on its debt (bonds and commercial borrowing).
The weighted average of the rates of return paid by a company on its equity (share issue) and on its debt (bonds and commercial borrowing).

Latest revision as of 04:11, 18 June 2010

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Cost of capital [r]: The weighted average of the rates of return paid by a company on its equity (share issue) and on its debt (bonds and commercial borrowing).