Conclusion

Eva R. Porras

A chapter in The Cost of Capital, 2011, pp 225-229 from Palgrave Macmillan

Abstract: Abstract All businesses and investment projects need capital to operate. However, financial capital — the money tied up in the business, is not free. A project’s cost of capital is the minimum expected rate of return the project needs to offer investors to attract money. Simply put, the cost of capital is the expected rate of return the market requires to commit capital to an investment. Thus, the cost of financial capital to a firm is the return the firm’s investors (debt and equity holders) receive from lending their savings to be used by the firm’s portfolio of investment projects.

Keywords: Cash Flow; Capital Structure; Investment Project; Investment Opportunity; Financial Capital (search for similar items in EconPapers)
Date: 2011
References: Add references at CitEc
Citations:

There are no downloads for this item, see the EconPapers FAQ for hints about obtaining it.

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:pal:palchp:978-0-230-29767-8_8

Ordering information: This item can be ordered from
http://www.palgrave.com/9780230297678

DOI: 10.1057/9780230297678_8

Access Statistics for this chapter

More chapters in Palgrave Macmillan Books from Palgrave Macmillan
Bibliographic data for series maintained by Sonal Shukla () and Springer Nature Abstracting and Indexing ().