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.
References in periodicals archive ?
as well as the average cost of capital, which comes down because it is actually quite a cheap facility, Molefe said,
Based on the decline in producer activity and the forecasted impact on future periods, in addition to an increase in the weighted average cost of capital, Enable recorded a non-cash impairment to goodwill of approximately $1.
exceed UBM's weighted average cost of capital in the first full
8 percent weighted average cost of capital (WACC), so there is still some ground to cover before achieving sustainable margins.
Airline investors will see return on invested capital (ROIC) move closer to the weighted average cost of capital (WACC).
EVA measures a firm's economic profit - it is profit after subtracting the full weighted average cost of capital and after correcting accounting distortions.
The assessment is based on a discounted cash flow (DCF) model with a nine-year average weighted average cost of capital (WACC) of 9.
This included the weighted average cost of capital (WACC) for the industry, which will be used from 2015 onwards.
However, this is nowhere near the average cost of capital of 7.
Current market conditions prevailing, this transaction is expected to create value by achieving a return on capital employed above the Group's weighted average cost of capital from 2013 onwards.
The primary subject matter of this case concerns the issues surrounding a firm's weighted average cost of capital (WACC).
For these purposes, we will build a company finance structure optimisation model, based on the weighted average cost of capital criterion.