Cost of capital

Cost of capital
  The rate of return a utility must offer to obtain additional funds. The cost of capital varies with the leverage ratio, the effective income tax rate, conditions in the bond and stock markets, growth rate of the utility, its dividend strategy, stability of net income, the amount of new capital required, and other factors dealing with business and financial risks. It is a composite of the cost for debt interest, preferred stock dividends, and common stockholders' earnings that provide the facilities used in supplying utility service.
  U.S. Dept. of Energy, Energy Information Administration's Energy Glossary

Energy terms . 2014.

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  • Cost Of Capital — The required return necessary to make a capital budgeting project, such as building a new factory, worthwhile. Cost of capital includes the cost of debt and the cost of equity. The cost of capital determines how a company can raise money (through …   Investment dictionary

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  • cost of capital — The required return for a capital budgeting project. Bloomberg Financial Dictionary * * * cost of capital UK US noun [S] ► ECONOMICS, FINANCE the amount of money that a company must pay out in dividends to it shareholders, and in interest on… …   Financial and business terms

  • cost of capital — kapitalo kaina statusas T sritis Gynyba apibrėžtis Suma, kurios atsisako organizacija nepasirinkdama alternatyvaus investavimo su lygiaverte rizika. atitikmenys: angl. cost of capital ryšiai: susijęs terminas – alternatyviosios sąnaudos šaltinis… …   Lithuanian dictionary (lietuvių žodynas)

  • cost of capital — kapitalo kaina statusas T sritis turto vertinimas apibrėžtis Numatoma grąžos norma rinkoje, reikalinga lėšoms tam tikrai investicijai pritraukti. atitikmenys: angl. cost of capital ryšiai: susijęs terminas – grąžos norma šaltinis Tarptautiniai… …   Lithuanian dictionary (lietuvių žodynas)

  • cost of capital — cost of raising money, money paid in order to maintain methods of income …   English contemporary dictionary

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