What is the Cost of Capital

In this video Ken gives a simple explanation of the cost of capital. Don't let the different forms of debt confuse you when trying to understand this basic concept.

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For more information on this topic check out the links below.

Cost of Capital Definition - Investopedia
https://www.investopedia.com › ... › Corporate Finance
Jun 5, 2019 - Cost of capital is the required return necessary to make a capital budgeting project, such as building a new factory, worthwhile. When analysts and investors discuss the cost of capital, they typically mean the weighted average of a firm's cost of debt and cost of equity blended ...

Cost of Capital -- Best Definition | InvestingAnswers
https://investinganswers.com/dictiona...
Cost of capital refers to the opportunity cost of making a specific investment. It is the rate of return that could have been earned by putting the same money into a different investment with equal risk. Thus, the cost of capital is the rate of return required to persuade the investor to make a given investment.

Cost of capital - Wikipedia
https://en.wikipedia.org/wiki/Cost_of...
In Economics and Accounting, the cost of capital is the cost of a company's funds (both debt and equity), or, from an investor's point of view "the required rate of return on a portfolio company's existing securities". It is used to evaluate new projects of a company.
‎Example · ‎Cost of equity · ‎Weighted average cost of ... · ‎Factors that can affect cost ...

Cost of Capital - Learn How Cost of Capital Affect Capital Structure
https://corporatefinanceinstitute.com › Resources › Knowledge › Finance
Cost of capital is the minimum rate of return that a business must earn before generating value. Before a business can turn a profit, it must at least generate ...