What is cost of capital?

The cost of capital refers to the total cost a company incurs to finance its operations, and it represents the required rate of return that investors expect for providing capital to the company. It encompasses the cost of debt, equity, and other forms of financing, reflecting the company's overall expense to maintain and raise funds for its activities. The cost of capital is a crucial factor in investment and financial decision-making, influencing capital budgeting, project valuation, and the overall financial health of a business.

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What Thomas Pick said plus it was very fast and couldn't hear it under the music