Entity and Opportunity cost of capital: Difference between pages

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imported>Doug Williamson
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# In a commercial context, the business ''entity'' refers to the whole of the business undertaking, regardless of whether it is financed by equity alone or by a combination of equity and debt.  The Entity Value is therefore the total value of the Equity plus the Debt.  In this context the entity is also sometimes known as the Enterprise (and the entity value as the Enterprise Value).
A strict measure of the cost of capital, emphasising that it is the current market cost of capital - and not the historical cost or the cash cost - that is relevant for financial decision making purposes.
# ''Financial reporting''.  The reporting unit for which financial information is summarised and presented.  For example a company or a group of companies.
# ''Tax''.  A business unit which is subject to taxation.  For example a company or a branch of a company established in another country.




== See also ==
== See also ==
* [[Debt]]
* [[Capital]]
* [[Equity]]
* [[Cost of capital]]
* [[Corporate value]]
* [[Opportunity cost]]


[[Category:Accounting,_tax_and_regulation]]
[[Category:The_business_context]]
[[Category:Corporate_finance]]
[[Category:Corporate_finance]]
[[Category:Investment]]

Latest revision as of 21:29, 16 December 2021

A strict measure of the cost of capital, emphasising that it is the current market cost of capital - and not the historical cost or the cash cost - that is relevant for financial decision making purposes.


See also

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