By investing capital, a business or individual seeks to earn a higher return than the capital's costs. At the national and global levels, financial capital is analyzed by economists to understand ...

See how we rate investing products to write unbiased product reviews. Weighted average cost of capital (WACC) is a key metric that shows a company's cost of capital across its debt and equity.

. The capital charge is the cost of capital times the amount of invested capital. This capital charge is a dollar amount. By capital charge rate is just the cost of capital. In other words, the ...

The return that is sacrificed by investing finance in one way rather than investing in an alternative of the same risk class, e.g. financial security.

Bruner, Robert, Kenneth M. Eades, Robert S. Harris, and Robert F. Higgins. "Best Practices in Estimating the Cost of Capital: Survey and Synthesis." Financial Practice and Education 8, no. 1 ...