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<a accesskey="3" href="page.php?w=cost_of_capital&amp;p=2">3.Next</a>
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<p>In <a href="page.php?w=economics">economics</a> and <a href="page.php?w=accounting">accounting</a>, the <b>cost of capital</b> is the cost of a company's funds (both <a href="page.php?w=debt">debt</a> and <a href="page.php?w=Equity_%28finance%29">equity</a>), or from an investor's point of view is "the <a href="page.php?w=required_rate_of_return">required rate of return</a> on a portfolio company's existing securities". It is used to evaluate new projects of a company. It is the minimum return that investors expect for providing capital to the</p><p>
<a accesskey="3" href="page.php?w=cost_of_capital&amp;p=2">3.Next</a>
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