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.
Nearby TermsAverage collection period, or days' receivables Average cost Average cost of capital Average daily balance Average discount rate
Copyright © 2011 Campbell R. Harvey, Professor of Finance, Fuqua School of Business at Duke University