Piggy bank with calculator getty What is the cost of capital? How does it affect the required return and investment of companies? originally appeared on Quora: the place to gain and share knowledge, empowering people to learn from others and better understand the world. Answer by Kilian Huber, Professor at University of Chicago, on Quora: If you are a business owner or have considered being one, you may be familiar with the concept of the cost of capital. However, how the cost of capital affects your company’s investment decisions is not obvious. The cost of capital refers to the return that investors expect to receive in exchange for providing money to a company. It’s influenced by fac
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