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Cost of Capital
The short answer
The return a company must earn on its investments to satisfy its debt holders and equity investors, used as a hurdle rate for evaluating new projects.
What is Cost of Capital?
The return a company must earn on its investments to satisfy its debt holders and equity investors, used as a hurdle rate for evaluating new projects.
About this page. Written by Associate Professor Charles Lo, CPA, PhD. Checked against reliable sources before publication. No ads and no paywall. Editorial standards · How we fact check · Corrections log · Report an error
Educational information only. Nothing on this page is personal financial, tax or legal advice. Investing involves risk, including the possible loss of principal.
