11-3 Cost of Capital Cost of Capital- The return the firms investors could expect to earn if they invested in securities with comparable degrees of risk Capital Structure-The firms mix of long term financing and equity financing Irwin/McGraw-Hill CThe McGraw-Hill Commpanies, Inc, 2001©The McGraw-Hill Companies, Inc.,2001 11- 3 Irwin/McGraw-Hill Cost of Capital Cost of Capital - The return the firm’s investors could expect to earn if they invested in securities with comparable degrees of risk. Capital Structure - The firm’s mix of long term financing and equity financing