cost of capital

1. 1.

   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

   Synonymscapital cost

   Broaderopportunity cost

Questions about cost of capital

What does cost of capital mean?

cost of capital means "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".

What is another word for cost of capital?

Close synonyms include capital cost. Each sense on this page lists its own synonyms, because a word with several meanings rarely has one substitute that works for all of them.

Is cost of capital a common word?

cost of capital is banded "Rare" — specialist or archaic — most readers will not have met it. The band comes from how often the word appears in a large corpus of everyday English, not from an editor's impression.