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How would one define the cost of capital in finance? 2. What is the weighted average...

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Finance

How would one define the cost of capital in finance?

2. What is the weighted average cost of capital?

3. Why must the expected return on capital exceed the cost ofcapital?

Answer & Explanation Solved by verified expert
3.5 Ratings (369 Votes)
Part 1 Cost of capital is the returns that the investors expect when a company raises capital for the purpose of capital budgeting like investing in various projects There are mostly two type of investors example equity investors and debt investors Normally    See Answer
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How would one define the cost of capital in finance?2. What is the weighted average cost of capital?3. Why must the expected return on capital exceed the cost ofcapital?

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