Examlex
To calculate which of these measures do you need to know the cost of capital?
Total Investment
The sum of all expenditures on capital assets, including stocks, bonds, real estate, and physical goods, within a specific period.
Opportunity Cost
The price of missing out on the next best option while making a choice or deciding between various possibilities.
Borrowed Funds
Capital that is obtained through loans or credit, typically for investment or expenditures, that needs to be repaid.
Retained Earnings
The portion of a company's profits not distributed to shareholders as dividends but instead reinvested in the business or kept as reserve.
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