And after the capital cost of the airplanes themselves, aviation fuel is the major cost of any airline.
The capital cost of implementing VDI today can still be significantly higher than the cost of a conventional distributed desktop.
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That certainty has economic value as a hedge, even if the capital cost of wind and solar power stations is, at the moment, higher than that of coal-fired ones.
Whether the solution is carbon capture or nukes, the capital cost of keeping carbon out of the air is going to be gigantic, and the economically painful process will probably set off a wave of mergers in the electric power business.
Rogers calls these Save-A-Watts and wants Duke to get a return on monitoring equipment and controls in its customers' premises calculated not from the capital cost of that gear but from the capital it would otherwise have spent to add generating plants.
One thing we know for certain: the cost of capital in the private health insurance industry pales in comparison to the cost of capital raised by Uncle Sam.
The increased cost of capital will lead to pressure on capitalization rates as the spreads between the cost of capital and capitalization rates will be compressing.
By including both the cost of paid-up capital and off-balance-sheet capital, managers and investors would be more accurate in their estimates of a company's true cost of capital, and therefore of a company's real value.
Basel III puts the very essence of that special relationship at risk, by enforcing higher capital ratios, higher cost of capital, and significantly increasing compliance costs for banks.
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If the typical cost of capital was 10%, the cost of insider trading would amount to 0.5%.
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This is in general much less dilutive than the cost of capital of venture equity.
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In valuing the company, we use a cost of capital of 11.42%, which would put Facebook in the top quartile of publicly traded U.S. firms in terms of risk.
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Glas Cymru's proposals will cut Welsh Water's cost of capital, its single biggest cost (accounting for a third of customers' bills).
Over time, excessive capital levels will increase the cost of capital to the banking industry and decrease lending.
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But because today capital is abundant and the cost of capital today is essentially zero, the same rules are the wrong rules.
The main thing is that owners can cover two of their big occupancy expenses (property tax and the cost of capital) out of pretax income.
It would need to nearly triple this ROIC to exceed its weighted average cost of capital ( WACC) of 8.2%.
Adding the Lucasfilm IP to our existing Disney, Pixar and Marvel IP clearly enhances our ability to serve consumers, strengthening our competitive position -- and we are confident we can earn a return on invested capital well in excess of our cost of capital.
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Devaluation means inflation, capital flight (and who wants to hold a depreciating currency?), increased cost of capital, destroyed savings and a lower standard of living.
Then the investor uses financial analytics to identify the businesses and management teams that demonstrate an awareness of their cost of capital and have a history of deploying their free cash flow in a shareholder value creating fashion.
It has made negative economic earnings (meaning its return on invested capital has been lower than its weighted average cost of capital) every year going back to 1998 when my model begins.
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Here is a better way to value stocks: First, the investor should weigh the cost of capital against the firm's stream of current and future free cash flows to determine the asset's value.
Up to now, those scale economies of fuel efficiency and of capital cost in these large generating units have been so great as to be able to absorb the additional cost of transmission and distribution and still be lower than any competing form of electrical generation (except of course where plentiful hydroelectric generation could be built).
Even without considering the cost of capital, TIVO is destroying quite a bit of value for investors.
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The irony, which seems to have been lost on Washington, is that an artificially low cost of capital (created by lenders who lost sight of risk management) got us into this mess in the first place, and now we're considering returning to easy money to get us out of it.
Such mood swings are common among investors in this capital-intensive industry that has a hard time earning its cost of capital.
Even a slightly lower cost of capital is important for a business that carries a lot of debt.
The maintenance capital, the cost of boxes continue to decline.
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The sudden reversal of capital has sharply increased the cost of borrowing, forcing firms to cut investment an important driver of growth in recent years.
And yet, a recent estimate in a 2009 paper on CSR reporting and the cost of equity capital, suggests that hundreds of large US firms, comprising as much as 10% of the value of the publicly traded US market, produce CSR reports.
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