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Financial Terms related to Capital
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glossary with more than five thousand financial
and business terms.
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Findthousandsoffinancialtermsatwww.
ftpall.
com
Financial Terms related to Capital
This document is part of the valuable contents
available at www.
ftpall.
com, a free online
glossary with more than five thousand financial
and business terms.
This document can be copied and distributed freely
respecting its original format.
It is forbidden its
transcription, translation or change on its format
without authorization of its author or editor.
CAPITAL
Average cost of capital
• A firm s required payout to the bondholders and to the 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.
Capital
• Cash or goods accumulated and available for use in producing more cash or
goods.
• The long-term funds of the firm; all items on the right-hand side of the firm s
balance sheet, excluding current liabilities.
• Money invested in a firm.
Capital ac
Less