Explain why we refer to the opportunity cost of capital, instead of just cost of capital or
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Explain why we refer to the opportunity cost of capital, instead of just "cost of capital" or "discount rate." While you're at it, also explain the following statement: "The opportunity cost of capital depends on the proposed use of cash, not the source of financing."
Cost Of CapitalCost of capital refers to the opportunity cost of making a specific investment . Cost of capital (COC) is the rate of return that a firm must earn on its project investments to maintain its market value and attract funds. COC is the required rate of...
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Principles of Corporate Finance
ISBN: 978-1259144387
12th edition
Authors: Richard Brealey, Stewart Myers, Franklin Allen
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