Sean Ross is a strategic adviser at 1031x.com, Investopedia contributor, and the founder and manager of Free Lances Ltd. Gordon Scott has been an active investor and technical analyst or 20+ years. He ...

Cost of capital is a term that investors and companies use to express how much it costs a firm to obtain funding for projects. This rate is used as a benchmark to evaluate potential investment ...

Many REITs talk about Weighted Average Cost of Capital, or WACC. We look at three of them, from the Net Lease sector. While WACC is of some use empirically, it is Return On Equity that matters more.

We construct a dataset of firms’ discount rates (i.e., required returns to capital) and perceived cost of capital using corporate conference calls. The relation between discount rates and the cost of ...