cost of capital

Noun

Meaning

the opportunity cost of the funds employed as the result of an investment decision; the rate of return that a business could earn if it chose another investment with equivalent risk

Source: WordNet

Synonyms

interest rate of interest capital cost

Hypernyms

opportunity cost

Examples

You know, when the cost of capital goes down, when credit becomes cheap, people start taking greater and greater risks. Fareed Zakaria

Close letter words and terms

cost objective cost of acquiring cost of acquisition cost of doing business cost of goods sold cost of living