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### Chapter 12 Cost of Capital

Course: OB 3303, Spring 2011
School: Dallas Baptist
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Word Count: 2198

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12 Cost Chapter of Capital Slides developed by: Pamela L. Hall, Western Washington University The Purpose of the Cost of Capital The cost of capital is the average rate paid for the use of capital funds Primarily used in capital budgeting Use as the hurdle rate, or benchmark for projects Compare IRR to this rate Discount cash flows at this rate to find NPV If a project cannot earn above this...

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University of Dayton - EGM - 202
University of Dayton - EGM - 202
University of Dayton - EGM - 202
University of Dayton - EGM - 202
University of Dayton - EGM - 202
University of Dayton - EGM - 202
University of Dayton - EGM - 202
University of Dayton - EGM - 202
University of Dayton - EGM - 202
University of Dayton - EGM - 202
University of Dayton - EGM - 202
University of Dayton - EGM - 202
University of Dayton - EGM - 202
University of Dayton - EGM - 202
University of Dayton - EGM - 202
University of Dayton - EGM - 202
University of Dayton - EGM - 202
University of Dayton - EGM - 202
University of Dayton - EGM - 202
University of Dayton - EGM - 202
University of Dayton - EGM - 202
University of Dayton - EGM - 202
University of Dayton - EGM - 202
University of Dayton - EGM - 202
University of Dayton - EGM - 202
University of Dayton - EGM - 202
University of Dayton - EGM - 202
University of Dayton - EGM - 202
University of Dayton - EGM - 202
University of Dayton - EGM - 202
University of Dayton - EGM - 202
University of Dayton - EGM - 202
University of Dayton - EGM - 202
University of Dayton - EGM - 202
University of Dayton - EGM - 202