This illustrated glossary uses Visual Finance™ to provide a contextualized 'big picture' view of financial results. The examples feature data for the Round Number Company—a 'made-up company' with simplified figures. The Appendix presents an explanation of how to read Visual Finance as well as the financial statements and VF views for the Round Number Company.
A weighted average of the interest cost of debt and the expectations of the shareholders.
Example:If half the company’s capital comes from borrowing at 8%, and half from investors who expect 15% return on investment, the Cost of Capital is deemed to be 11.5%. |
The above is our generic explanations of common corporate financial terminology. Actual meanings can vary widely from company to company; in order to have the correct internal definition you need to ask your Finance Department, "What do you mean by that?"
term list.