• Skip to primary navigation
  • Skip to main content
  • Skip to primary sidebar
Free ACCA & CIMA online courses from OpenTuition

Free ACCA & CIMA online courses from OpenTuition

Free Notes, Lectures, Tests and Forums for ACCA and CIMA exams

  • ACCA
  • CIMA
  • FIA
  • OBU
  • Books
  • Forums
  • Ask AI
  • Search
  • Register
  • Login
  • ACCA Forums
  • Ask ACCA Tutor
  • FIA Forums
  • CIMA Forums
  • OBU Forums
  • Qualified Members forum
  • Buy/Sell Books
  • All Forums
  • Latest Topics

20% off ACCA & CIMA Books

OpenTuition recommends the new interactive BPP books for December 2025 exams.
Get your discount code >>

Cost of capital

Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA FM Exams › Cost of capital

  • This topic has 1 reply, 2 voices, and was last updated 12 years ago by John Moffat.
Viewing 2 posts - 1 through 2 (of 2 total)
  • Author
    Posts
  • July 19, 2013 at 3:12 pm #134146
    shahbaz Gohar
    Member
    • Topics: 6
    • Replies: 7
    • ☆

    Why cost of capital is used as discounting rate to calculate npv?

    July 20, 2013 at 8:38 am #134160
    John Moffat
    Keymaster
    • Topics: 57
    • Replies: 54768
    • ☆☆☆☆☆

    The cost of capital is effectively the rate of interest that the company is having to pay on the money it uses, or the return needed from investments in order to keep the investors (lenders and shareholders) ‘happy’.
    Discounting at the cost of capital determines whether or not the investment is giving a sufficient return.

  • Author
    Posts
Viewing 2 posts - 1 through 2 (of 2 total)
  • You must be logged in to reply to this topic.
Log In

Primary Sidebar

Donate
If you have benefited from our materials, please donate

ACCA News:

ACCA My Exam Performance for non-variant

Applied Skills exams is available NOW

ACCA Options:  “Read the Mind of the Marker” articles

Subscribe to ACCA’s Student Accountant Direct

ACCA CBE 2025 Exams

How was your exam, and what was the exam result?

BT CBE exam was.. | MA CBE exam was..
FA CBE exam was.. | LW CBE exam was..

Donate

If you have benefited from OpenTuition please donate.

PQ Magazine

Latest Comments

  • Thashiee on Financial management objectives – ACCA Financial Management (FM)
  • ahmedhashish on FM Chapter 8 Questions – Relevant cash flows for DCF
  • hoangacca on Inventory Control (part 3) – Economic Batch Quantity – ACCA Management Accounting (MA)
  • John Moffat on Interest rate risk management (2) – ACCA (AFM) lectures
  • Linn@ on Interest rate risk management (2) – ACCA (AFM) lectures

Copyright © 2025 · Support · Contact · Advertising · OpenLicense · About · Sitemap · Comments · Log in