Discover the key differences between the cost of capital and the discount rate in estimating required returns for projects or investments.

It is a number regarded by many top executives and investors as crucial to judging an institution’s success. But the abstract nature of cost of capital in the banking industry can leave managers ...

NEWS ITEM: The Surface Transportation Board (STB) proposes to change the formula for computing the cost of the equity component of the railroad industry’s cost of capital. This is of consequence to ...

Brian Beers is a digital editor, writer, Emmy-nominated producer, and content expert with 15+ years of experience writing about corporate finance & accounting, fundamental analysis, and investing.

The cost of capital is an aggregate measure and “not intended to measure the desirability of any individual capital investment project”; it “is one component used in evaluating the adequacy of a ...