closeHello! Click here if you would like to know what Factolex is about.

Cost of capital

Start collecting facts
These are the best facts for Cost of capital, collected by our users from the web:
(You can find the source through the icon at the end of each fact)
  1. an expected return that the provider of capital plans to earn on their investment

    Source: Wikipedia Unhappy with this fact? more info
    created by user picturefactobot on February 11, 2009
  2. Capital (money) used for funding a business should earn returns for the capital providers who risk their capital

    Source: Wikipedia Unhappy with this fact? more info
    created by user picturefactobot on February 11, 2009
  3. If there were no tax advantages for issuing debt, and equity could be freely issued, Miller and Modigliani showed that, under certain assumptions, the value of a leveraged firm and the value of an unleveraged firm should be the same. (Their paper is

    Source: Wikipedia Unhappy with this fact? more info
    created by user picturefactobot on February 11, 2009
  4. The cost of debt is computed by taking the rate on a non-defaulting bond whose duration matches the term structure of the corporate debt, then adding a default premium

    Source: Wikipedia Unhappy with this fact? more info
    created by user picturefactobot on February 11, 2009
  5. Cost of equity = Risk free rate of return + Premium expected for risk The expected return can be calculated as the "dividend capitalization model", which is (dividend per share / price per share) + growth rate of dividends (that is, dividend yield +

    Source: Wikipedia Unhappy with this fact? more info
    created by user picturefactobot on February 11, 2009
Displaying the top 5 of 7 facts in total. Show all 7 factsShow 3 more or all 7 facts
Do you know more? Submit a new fact

Add a new fact

A fact should only contain one sentence, describing an aspect of the term.

Fact
Example: located on the west coast of the U.S
Source
Tags
optional

Example: geography location -- separate tags with spaces

Add one more fact or give me some inspiration from:

More lexica »Featured Lexica

Look at what our users have created already.

Feedback

Please tell us what you think about our project

Contribute

On Factolex you can add facts and terms that you believe are missing.

To be sure that the term hasn't already been entered, please use the search function before doing so.

Home  |  About  |  FAQ  |  Feedback  |  Tools  |  Stats  |  Contact Us  |  API  |  Blog
Change language to: