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.
The cost of capital is a weighted average of the cost of debt, preferred equity, and common equity, where the weights are the market-value percentages of debt, preferred equity, and common equity. in a firm's capital structure.he Company is requesting approval from the IRC that its Weighted Average Cost of Capital. (WACC) be set at 11.6%, including the weighted combination of the Companyâs cost rates for. debt and a fair rate of return on equity. Weighted Average Cost of Capital for Dominica Electricity Services Ltd.