Corporate finance and Opportunity cost: Difference between pages

Revision as of 11:05, 22 June 2016

The expected return that is foregone by investing in a project, rather than in the next best use of capital or other resources.

It is the opportunity cost of capital and other resources that is the relevant economic measure for financial decision making purposes.

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-. The management and analysis of a firm's shareholder value, particularly in relation to its capital structure and in relation to any proposals for major acquisitions or disposals.
+The expected return that is foregone by investing in a project, rather than in the next best use of capital or other resources.
+It is the opportunity cost of capital and other resources that is the relevant economic measure for financial decision making purposes.
-. External services supporting this activity, for example banking, legal or accounting advisory and reporting services.
 == See also ==
-* [[Capital structure]]
+* [[Cost of capital]]
-* [[CertCFF]]
+* [[Opportunity cost of capital]]
-* [[Shareholder value]]
+* [[Production possibility curves]]
+* [[Supernormal profit]]