Deleverage 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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-To deleverage is to decrease financial leverage.
+The expected return that is foregone by investing in a project, rather than in the next best use of capital or other resources.
-For example by paying off existing debt, or by not renewing maturing debt.
+It is the opportunity cost of capital and other resources that is the relevant economic measure for financial decision making purposes.
 == See also ==
-* [[Leverage]]
+* [[Cost of capital]]
+* [[Opportunity cost of capital]]
-[[Category:Corporate_finance]]
+* [[Production possibility curves]]
-[[Category:Risk_frameworks]]
+* [[Supernormal profit]]