Define the cost of capital
The cost of capital is known as the cost that the organization incurs to finance its projects. Within this framework, the intended capital is the funds raised by the Foundation to finance its long-term projects. The cost of capital varies according to the structure and sources of financing, and financing is usually done through a combination of different sources of financing. The cost of capital is considered one of the most important factors affecting investment decision-making from the point of view of the institution or from the viewpoint of the investor or financier.