AVERAGE COST OF CAPITAL


Meaning of AVERAGE COST OF CAPITAL in English

A firm's required payout to bondholders and stockholders expressed as a percentage of capital contributed to the firm. Average cost of capital is computed by dividing the total required cost of capital by the total amount of contributed capital.

Campbell R. Harvey. Hypertextual finance English glossary.      Английский словарь гипертекстовых финансов.