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BASIS POINTS: The Wide, Wide World of Cost-of-Capital Calculations

March 16, 2011

by Karen M. Kroll

in

Many companies have been stashing cash like crazy. Businesses are less alike, however, when it comes to determining the calculation variables they use to decide how best to invest their cash.

The Wide, Wide World of Cost-of-Capital Calculations | Source: The Big Fat Finance Blog.

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It is used to evaluate new

On December 22nd, 2011 Guy Riordan (not verified) said:

It is used to evaluate new projects of a company as it is the minimum return that investors expect for providing capital to the company, thus setting a benchmark that a new project has to meet. -Guy Riordan