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The cost of capital is the overall cost of financing a company's operations, including both debt and equity. The cost of equity specifically refers to the return required by investors who have provided equity financing. The cost of capital influences a company's investment decisions, as it represents the minimum return the company must earn on its investments to satisfy its investors. The cost of equity, on the other hand, affects the company's ability to attract investors and raise funds for growth and expansion.

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5mo ago

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