Average cost of capital

A firm's required payout to bondholders and stockholders expressed as a percentage of capital contributed to the firm. Average cost of capital is computed by dividing the total required cost of capital by the total amount of contributed capital.

Average Cost of Capital

The total amount that a company must pay in dividends on preferred stock and in coupons on bonds, expressed as a percentage of the total amount raised through the issue of stock and bonds. This shows what a company must spend in order to raise the capital it needs to maintain or expand operations.

单词	average cost of capital
释义	Average cost of capital Average cost of capital A firm's required payout to bondholders and stockholders expressed as a percentage of capital contributed to the firm. Average cost of capital is computed by dividing the total required cost of capital by the total amount of contributed capital. Average Cost of Capital The total amount that a company must pay in dividends on preferred stock and in coupons on bonds, expressed as a percentage of the total amount raised through the issue of stock and bonds. This shows what a company must spend in order to raise the capital it needs to maintain or expand operations.
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