Estee Lauder Companies' stock was sold by a variety of institutional investors in the last quarter, including Fred Alger Management Inc., American Century Companies Inc., Brown Advisory Inc., Renaissance Technologies LLC, Credit Agricole S A, Robeco Institutional Asset Management B.V., TIAA CREF Investment Management LLC and Montag & Caldwell LLC.
DEFINITION of 'Cost Of Capital'. The cost of funds used for financing a business. Cost of capital depends on the mode of financing used â it refers to the cost of equity if the business is financed solely through equity, or to the cost of debt if it is financed solely through debt.ince the cost of capital represents a hurdle rate that a company must overcome before it can generate value, it is extensively used in the capital budgeting process to determine whether the company should proceed with a project.
cost of capital. The overall percentage cost of the funds used to finance a firm's assets. Cost of capital is a composite cost of the individual sources of funds including common stock, debt, preferred stock, and retained earnings.or example, if a person has $10,000 to invest and must choose between Stock A and Stock B, the cost of capital is the difference in their returns. If that person invests $10,000 in Stock A and receives a 5% return, while Stock B makes a 7% return, the cost of capital is 2%.