Difference between revisions of "Cost"

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Cost refers to the total amount a consumer or investor must pay for goods, services or assets - also referred as expense. It refers to both a payment of [[money]] and also non-monetary expenses like labor, time or sacrifice of other benefits.
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A [[corporation]]'s calculation of the expense of raising money from [[investors]]s to fund its growth or development is called the cost of [[capital]]. This is the rate of [[return]] the company must offer on [[debt]] securities such as [[bonds]] or [[notes]] to persuade investors to purchase them.<ref>{{cite web|url=http://www.lse.co.uk/financeglossary.asp?searchTerm=&iArticleID=1509&definition=cost_of_capital
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|name=Cost of Capital|org=London South East|date=October 30, 2008}}</ref> Companies often figure the relative performance of an asset using a cost-benefit ratio, expressed as net present value divided by the initial investment.<ref>{{cite web|url=http://www.lse.co.uk/financeglossary.asp?searchTerm=cost&iArticleID=1589&definition=benefit-cost_ratio|name=Benefit-Cost Ratio|org=London South East|date=October 30, 2008}}</ref>
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== References ==
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<references />

Revision as of 20:05, 30 October 2008

Template:Infobox Midpage Need Sponsor Right Cost refers to the total amount a consumer or investor must pay for goods, services or assets - also referred as expense. It refers to both a payment of money and also non-monetary expenses like labor, time or sacrifice of other benefits.

A corporation's calculation of the expense of raising money from investorss to fund its growth or development is called the cost of capital. This is the rate of return the company must offer on debt securities such as bonds or notes to persuade investors to purchase them.[1] Companies often figure the relative performance of an asset using a cost-benefit ratio, expressed as net present value divided by the initial investment.[2]

References

  1. Cost of Capital. London South East.
  2. Benefit-Cost Ratio. London South East.