What Is the Cost of Equity? The cost of equity is the return that a company requires to decide if an investment meets capital return requirements. Firms often use it as a capital budgeting ...

Weighted average cost of capital (WACC) is a key metric that shows ... The WACC can serve as a hurdle rate, meaning the bare minimum return that an investment or project must return in order ...

Equity financing, meaning the sale of stock shares ... key metrics for analyzing business capital are weighted average cost of capital, debt to equity, debt to capital, and return on 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 ...

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 ...