Composite Cost Of Capital

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Dictionary Says

Definition of 'Composite Cost Of Capital'

A company's cost to borrow money given the proportional amounts of each type of debt and equity a company has taken on. A company's debt and equity, or its capital structure, typically includes common stock, preferred stock and bonds. A high composite cost of capital, indicates that a company has high borrowing costs; a low composite cost of capital signifies low borrowing costs.

Also referred to as "weighted average cost of capital" or WACC.
Investopedia Says

Investopedia explains 'Composite Cost Of Capital'

A company's management uses the company's composite cost of capital in internal decision making. For example, it might use it as the discount rate in a discounted cash flow analysis to help decide whether the company could profitably finance a new project. Investors may use a company's composite cost of capital as one of several factors in deciding whether to buy the company's stock.

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'Composite Cost Of Capital'

  • CFA Level 1 Study Guide - Ethics and Standards - GIPS: Composites ...

    http://www.investopedia.com/exam-guide/cfa-level-1/ethics-standards/gips-composites-verification.asp
    ... Capital Budgeting Basics; 11.4 The Cost of Capital; 11.5 Cost of Retained Earnings;
    11.6 Cost of Newly Issued Stock; 11.7 Target Capital ...

  • CFA Level 1 Study Guide - Ethics and Standards - GIPS ...

    http://www.investopedia.com/exam-guide/cfa-level-1/ethics-standards/gips-compliance-fundamentals.asp
    ... Capital Budgeting Basics; 11.4 The Cost of Capital; 11.5 Cost of Retained Earnings;
    11.6 Cost of Newly Issued Stock; 11.7 Target Capital ...

  • CFA Level 1 Study Guide - Ethics and Standards - GIPS ...

    http://www.investopedia.com/exam-guide/cfa-level-1/ethics-standards/gips-requirements-recommendations.asp
    ... Capital Budgeting Basics; 11.4 The Cost of Capital; 11.5 Cost of Retained Earnings;
    11.6 Cost of Newly Issued Stock; 11.7 Target Capital ...

  • CFA Level 1 Study Guide - Securities Markets - Domestic vs. Global ...

    http://www.investopedia.com/exam-guide/cfa-level-1/securities-markets/domestic-versus-global-indexes.asp
    ... Capital Budgeting Basics; 11.4 The Cost of Capital; 11.5 Cost of Retained Earnings;
    11.6 Cost of Newly Issued Stock; 11.7 Target Capital ...

  • Equity Valuation In Good Times And Bad

    http://www.investopedia.com/articles/fundamental-analysis/09/equity-valuation-good-bad.asp
    ... present by the weighted average cost of capital ... and porfolio manager for Winthrop
    Capital Management in ... Being familiar with composite presentations will help ...

  • Valuing Firms Using Present Value Of Free Cash Flows

    http://www.investopedia.com/articles/fundamental-analysis/11/present-value-free-cash-flow.asp
    ... of 5%. We will assume that the weighted average cost of capital is 10 ... Being familiar
    with composite presentations will help you better assess the quality of ...

  • Canary Capital Partners: Anatomy Of A Scandal

    http://www.investopedia.com/articles/mutualfund/08/canary_scandal.asp
    ... in a fund share in the cost of the ... Canary Capital paid $40 million to settle Spitzer's
    charges ... Being familiar with composite presentations will help you better ...

  • Cash: Can A Company Have Too Much?

    http://www.investopedia.com/articles/fundamental/03/062503.asp
    ... is less than the company's cost of capital ... cash flows, business cycles, its capital
    expenditure plans ... Being familiar with composite presentations will help you ...

  • CFA Level 1 Study Guide - Securities Markets - Characteristics of ...

    http://www.investopedia.com/exam-guide/cfa-level-1/securities-markets/security-index-characteristics.asp
    ... Capital Budgeting Basics; 11.4 The Cost of Capital; 11.5 Cost of Retained Earnings;
    11.6 Cost of Newly Issued Stock; 11.7 Target Capital ...

  • Valuing Private Companies

    http://www.investopedia.com/articles/fundamental-analysis/11/valuing-private-companies.asp
    ... structure has been estimated, calculate the weighted average cost of capital (WAAC). ...
    Being familiar with composite presentations will help you better assess ...

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