pääomakustannusprosentin

Pääomakustannusprosentti, known in English as the cost of capital percentage, is a key financial metric used to assess the profitability of an investment or a company. It represents the required rate of return that investors expect to receive for their investment in a company's assets, taking into account both debt and equity financing. Essentially, it's the blended cost of all the capital a company uses.

The calculation of the cost of capital involves determining the weighted average of the cost of debt and the cost of equity. The cost of debt is typically the interest rate a company pays on its borrowings, adjusted for tax deductibility. The cost of equity, on the other hand, represents the return shareholders expect for investing in the company, often estimated using models like the Capital Asset Pricing Model (CAPM).

This percentage is crucial for various financial decisions. For instance, when evaluating new projects, a company will compare the project's expected return to its cost of capital. If the project's return exceeds the cost of capital, it is generally considered a worthwhile investment. Similarly, investors use the cost of capital to gauge whether a company is generating sufficient returns to compensate them for the risk they undertake. A consistently lower cost of capital can indicate a financially sound and efficient company.