A company's negative net debt structure brings down the cost of its equity, but has no impact on the cost of capital which is the same as if the company had no cash. Managers have very little margin for manoeuvre to create value by reducing their cost of capital, as if they lower the cost of capital they will most likely also lower their returns. The only hope that they have is of providing better information to the market. 1/When is the cost of capital equal to the cost of equity? Can the cost of capital be equal to the cost of debt? 2/Why does the cost of capital constitute a direct link between return on capital expendi- ture and the returns required by capital investors? 3/Why is the cost of capital not an accounting concept