I need some help in understanding what is the cost of capital, and what are the components of the cost of capital.
What is cost of capital? What are the components of cost of capital?
Cost of capital is the required rate of return on invested funds. The cost of capital for a firm is the rate of return that must be earned by the firm on its investments in order to satisfy the required rate of return of the firm's investors from whom the funds have been raised by ...
This solution discusses cost of capital, explaining in detail the components of the required rate of return on invested funds.