Cost of capital

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Cost of capital is the amount forgone by holding a unit of capital for one period, including interest, depreciation, and the gain or loss from the change in the price of capital.

Definition

According to Macroeconomics by Mankiw (7th edition),

Cost of capital. The amount forgone by holding a unit of capital for one period, including interest, depreciation, and the gain or loss from the change in the price of capital.

According to Cost Accounting by Horngren, Datar, Rajan (14th edition), Cost of capital. See required rate of return (RRR).

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