Cost of capital is the required return a company needs in order to make a capital budgeting project, such as building a new factory, worthwhile. Want to see more pictures of Cost Of Capital quotes? In 1920 and 1921, Dutch traders who had sold commodities to Austria could buy them back again after a while much cheaper than they had originally sold them, because the Austrian traders completely failed to see that they were selling them for less than they had cost.”, “Build into each budget the cost of hiring and don't lump yourself with capital investment.”, “When I started Biocon in 1978, the obstacles I needed to navigate were manifold - ranging from infrastructural hurdles to issues related to my credibility as a business woman. 12 famous quotes about expenses and savings Slideshare uses cookies to improve functionality and performance, and to provide you with relevant advertising. A risk-free interest rate (e.g., government bonds) 2. Cost of capital is used to compare different investments with equal risk. We can't innovate without the belief that we can succeed, the confidence that others will be there to help us on the journey, and the security that we will not be punished if we fail to reach our goal. Copyright © 2020 More Famous Quotes. The most common measure of cost of capital is the weighted average cost of capital, which is a composite measure of marginal return required on all components of the company’s capital, namely debt, preferred stock and common stock.. What is Cost of Capital? They fought a real revolution. “When the capital development of a country becomes a by-product of the activities of a casino, the job is likely to be ill-done”. They say that if you're generating a 100% return on capital, then you shouldn't invest in something that generates an 80% return on capital. Individual capitalists, we there discovered, each of them acting in his or her own self-interest and locked in competitive struggle with each other, can produce an aggregative result which goes against their class interest seen as a whole. Rather, the purpose of our economy is beyond democratic deliberation under any form of capitalism, since the defining purpose of capital accumulation is built into how we produce our social wealth in the first place.”, “The future throws a bridge toward the past, over the gaping abyss of capitalist non-culture.”, “What we need is a new kind of environmentalism, defined not by saying no but by saying yes. Estimate your monthly bill and print your results. The whole game is to turn retained earnings into more earnings. A fast-moving world demands innovation for long-term success.”, “Pervasive depletion and overuse of water supplies, the high capital cost of new large water projects, rising pumping costs and worsening ecological damage call for a shift in the way water is valued, used and managed.”, “A global financial cabal engineered a fraudulent housing and debt bubble [2008], illegally shifted vast amounts of capital out of the US; and used 'privatization' as a form of piracy - a pretext to move government assets to private investors at below-market prices and then shift private liabilities back to government at no cost to the private liability holder Clearly, there was a global financial coup d'etat underway.”, “We will never, never sell our freedom for capital or technical aid. It's crazy.”, “We're guessing at our future opportunity cost. Quotes tagged as "capital" Showing 1-30 of 92. “Money is always eager and ready to work for anyone who is ready to employ it.”. For entrepreneurs to control capital, interest rates must reflect its real cost rather than merely the cost of printing money. Abraham Lincoln Warrenis guessing that he'll have the opportunity to put capital out at high rates of return, so he's not willing to put it out at less than 10% now. In essence, I gave away 1.6% of a wonderful business – one now valued at $220 billion – to buy a worthless business. It is important, because a company’s investment decisions related to new operations should always result in a return that exceeds its cost of capital – if not, then the company is not generating a return for its investors. By their individual action they can endanger the basis for accumulation. Freedom comes to be defined, in practice if not in commencement speeches, as the freedom to exploit. Labor is prior to, and independent of, capital. By changes in the material conditions of existence, this form of Socialism, however, by no means understands abolition of the bourgeois relations of production, an abolition that can be effected only by a revolution, but administrative reforms, based on the continued existence of these relations; reforms, therefore, that in no respect affect the relations between capital and labour, but, at the best, lessen the cost, and simplify the administrative work, of bourgeois government.”, “People are delighted to accept pensions and gratuities, for which they hire out their labour or their support or their services. Fear is the foe of the faddist, but the friend of the fundamentalist.”, “It takes almost no capital to open a new See's candy store. The weight of the debt component is computed by dividing the outstanding debt by the total capital invested in the business i.e. Weighted average cost of capital = 18,380/1,69.000 x 100 = 10.87% . It will be but the stepping-stone to others, larger and more sweeping, till out political contests will become a war of the poor against the rich, - a war constantly growing in intensity and bitterness.”, “They meant what they said about freedom. Increasingly, the impoverished masses are understanding that the prosperity of the developed countries and of the privileged minorities in their own countries is founded on their poverty.”, “Spain has been massively diverting capital from the private sector into politically favored environmental projects for the better part of a decade ... every green job created, eliminated 2.2 real jobs and cost around $800,000 each!”, “Let's take energy, for instance.

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