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what is a cost of capital

Deferred consideration, Business combinations

asked Dec 4, 2017 in General IFRS Discussion by bellend Level 1 Member (1,100 points)

2 Answers

0 votes
Cost of capital means to the opportunity cost of a specific investment. It is the rate of return that could have been earned by putting the same money into a different investment with equal risk. Thus, the cost of capital is the rate of return required to persuade the investor to make a given investment
answered Dec 4, 2017 by anonymous
0 votes
Cost of capital means the percentage of return an investor will expect from making the investment. If you are talking from accounting, it means different things in different conetext - for impairment this means cost of raising debt funds, for esops this means cost of equity capital.
answered Jan 20 by Kkb
reshown May 21 by Visio