Mastery card
I can explain Cost of Capital
What it costs the company to raise and use money.
Cost of capital is the required return on funds - often proxied by WACC for investment decisions.
Sticky trick
Cost of capital = 'what our money expects to earn.' Often ≈ WACC.
Take into the room
In plain English, what is Cost of Capital?
Or open the share card 💸
Or start your own 5-word trail from home.