Retained cost of capital is an analysis that uses either a hypothetical or actual no-debt scenario to measure the cost to a company of a particular capital project.
Non-leveraged cost of capital compares the cost of capital of a project using zero debt as an alternative to the cost of a leveraged capital investment.
Non-leveraged cost of capital is generally higher than leveraged cost of capital because the cost of debt is lower than the cost of equity.
To calculate the unlevered cost of capital, several factors are needed, which include the unlevered beta, the market risk premium, and the risk-free rate of return.
If a company cannot deliver expected returns without leverage, investors may choose not to invest.
In general, if an investor considers a stock to be high risk, it is usually due to a higher non-leveraged cost of capital, all other things being equal.
Evaluation costs are the fees a company pays for discovering defects in its products before they are delivered to customers; they are a form of quality control.
The articles of association can be seen as a user manual for the company, defining its purpose and outlining the methodology for carrying out the necessary day-to-day tasks.
When a company or government agency buys or leases existing manufacturing facilities to launch new manufacturing activities, this is called an investment in existing facilities.
The Code of Ethics sets out the ethical principles of the organization and the best practices to be followed with respect to honesty, integrity and professionalism.