Complete Accounting Tutorial

Complete Accounting Tutorial
This download package includes explanations of 30 accounting topics, financial and managerial exams, cheat sheet, bookkeeping test, accounting puzzles, practice drills, Q&A, and an accounting dictionary.

Monday, November 24, 2008

What is Cost of Capital?

The cost of capital is the minimum rate of return an investment project must generate in order to pay its financing costs.

For a levered firm, the financing costs can be represented by the weighted average cost of capital:

More information about the weighted average cost of capital

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