Explain why we refer to the opportunity cost of capital, instead of just cost of capital or

Question:

Explain why we refer to the opportunity cost of capital, instead of just "cost of capital" or "discount rate." While you're at it, also explain the following statement: "The opportunity cost of capital depends on the proposed use of cash, not the source of financing."

Cost Of Capital
Cost of capital refers to the opportunity cost of making a specific investment . Cost of capital (COC) is the rate of return that a firm must earn on its project investments to maintain its market value and attract funds. COC is the required rate of...
Fantastic news! We've Found the answer you've been seeking!

Step by Step Answer:

Related Book For  answer-question

Principles of Corporate Finance

ISBN: 978-1259144387

12th edition

Authors: Richard Brealey, Stewart Myers, Franklin Allen

Question Posted: