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COST OF CAPITAL - Coggle Diagram
COST OF CAPITAL
Meaning & Definition
The cost of capital to a firm is the minimum return ,which the suppliers of capital require.
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Definition: 1) "Cost of capital is the rate of return ,the firm requires from investment in order to increase the value of the firm in the market place." -** John J .Hampton
2) " Cost of capital is the minimum rate of return which a firm requires as a condition for undertaking an investment ."
Milton .H.Spencer**
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Cost of capital is also termed as cut-off rate, the minimum rate of return, or hurdle rate