Opportunity cost of capital

Expected return that is foregone by investing in a project rather than in comparable financial securities. The New York Times Financial Glossary

Financial and business terms. 2012.

Look at other dictionaries:

  • Opportunity cost of capital — The opportunity cost of capital is the expected rate of return forgone by bypassing of other potential investment activities for a given capital. It is a rate of return that investors could earn in financial markets. See also Opportunity cost… …   Wikipedia

  • opportunity cost of capital — expected return that is forgone by investing in a project rather than in comparable financial securities. Bloomberg Financial Dictionary …   Financial and business terms

  • Opportunity cost — Economics …   Wikipedia

  • cost of capital — noun 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 • Syn: ↑capital cost • Hypernyms: ↑opportunity cost …   Useful english dictionary

  • opportunity cost — The economic cost of an action measured in terms of the benefit foregone by not pursuing the best alternative course of action. The cost of funds, for example, must be measured in terms of the returns they could earn in the capital markets for… …   Accounting dictionary

  • opportunity cost — The economic cost of an action measured in terms of the benefit foregone by not pursuing the best alternative course of action. The cost of funds, for example, must be measured in terms of the returns they could earn in the capital markets for… …   Big dictionary of business and management

  • opportunity cost — noun cost in terms of foregoing alternatives • Hypernyms: ↑cost • Hyponyms: ↑cost of capital, ↑capital cost, ↑carrying cost, ↑carrying charge …   Useful english dictionary

  • cost of capital — Fin the minimum acceptable return on an investment, generally computed as a hurdle rate for use in investment appraisal exercises. The computation of the optimal cost of capital can be complex, and many ways of determining this opportunity cost… …   The ultimate business dictionary

  • Weighted average cost of capital — The weighted average cost of capital (WACC) is the rate that a company is expected to pay to finance its assets. WACC is the minimum return that a company must earn on existing asset base to satisfy its creditors, owners, and other providers of… …   Wikipedia

  • valuation opportunity cost — The potential increase in firm value associated with investments that are for gone due to capital rationing. Bloomberg Financial Dictionary …   Financial and business terms

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