Ultimately, that drives down the cost of capital in the U.S. relative to our competitors.
This is in general much less dilutive than the cost of capital of venture equity.
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Stamp duty is cheap to collect but it raises the cost of capital for firms.
At the very least, the cost of capital for the region's governments and firms will increase.
That suggests consumer spending will be lower and the cost of capital higher than before the crunch.
Even without considering the cost of capital, TIVO is destroying quite a bit of value for investors.
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Over time, excessive capital levels will increase the cost of capital to the banking industry and decrease lending.
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If the banking system is completely paralyzed then the cost of capital de facto increases an infinite amount.
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The cost of capital should remain at comparatively low levels for many companies.
They say the real problem is final demand, not the cost of capital.
This, in turn, would lead to a spike in the cost of capital.
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When the cost of capital goes up, the return on capital must also increase, or the economy will liquidate itself.
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It would increase the cost of capital to companies and could potentially change the way we return capital to shareholders.
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In finance, investors address changes in the cost of capital by incorporating the two interrelated factors, inflation and interest rates.
"It's a trade-off, " Mr. Zuppone said, and changes would likely raise trading costs and the cost of capital for companies.
As the government spends more to finance its contingent liabilities, the cost of capital in China should rise, Huang writes.
As a result, the cost of capital went up, malinvestment exploded, real GDP growth slowed down, and income inequality increased.
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Investors will be more cautious about pouring their money into the next bright idea, which could raise the cost of capital.
If a sharp rise in share prices reduces the cost of capital, for example, then firms will be tempted to overinvest.
Something has to give as the debt market tightens, Kravis added, and as the cost of capital goes up, multiples come down.
Additionally, the capital markets will price in future inflation and price bonds accordingly, which also will drive up the cost of capital.
If this sounds surprising, consider how the cost of capital is calculated.
First, higher personal-saving rates and (more optimistically) a lower federal deficit will hold down long-term interest rates and the cost of capital.
The inhibition here is not the government but the cost of capital.
But because today capital is abundant and the cost of capital today is essentially zero, the same rules are the wrong rules.
The intuitively appealing and logical argument is that the withdrawal of QE2 will drive up Treasury rates and thus the cost of capital.
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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.
The widening of the risk premium today is a major depressant because it has raised the cost of capital for everyone but the U.S Treasury.
They argue that a further decrease in the cost of capital will not spur the desired increase in demand that the economy so badly needs.
With growth rising, the cost of capital interest rates should pick up too.
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