Tag: Cost of Capital

Cost of Capital” is a term used to refer to the rate of return a company must earn on its investments in order to remain financially viable. The cost of capital can be broken down into two parts: the cost of debt and the cost of equity. The cost of debt is the required rate of return on debts the company has incurred. The cost of equity is the estimated rate of return a company must offer its investors in order to entice them to invest in the company. Understanding the cost of capital is important for investors as it is a key factor when assessing the overall profitability of an investment.

Capital

Cost of Capital in Forex Trading: An Academic Overview

Penny Grimes

Cost of capital forex refers to the amount of money that needs to be invested to participate in the foreign exchange market. It can be impacted by factors such as liquidity, international relations, and of course, the risk associated with the currency pair being traded. Investing in forex requires traders and investors to be aware of the ever-changing market conditions and to be able to adequately manage their risk in order to maximize their returns.