Cost of Capital

This is the cost of raising money to run your business.

For instance, a company sold $50,000 worth of stock and must pay 4% dividends. They borrowed $50,000 from the bank and must pay 8% interest. Half their capital cost them 4% and half cost them 8%.

https://accounting.uworld.com/cpa-review/lc/accounting-dictionary/term/cost-of-capital/