Discover the key differences between the cost of capital and the discount rate in estimating required returns for projects or investments.
The cost of capital is an aggregate measure and “not intended to measure the desirability of any individual capital investment project”; it “is one component used in evaluating the adequacy of a ...
Many REITs talk about Weighted Average Cost of Capital, or WACC. We look at three of them, from the Net Lease sector. While WACC is of some use empirically, it is Return On Equity that matters more.