The actual expenses incurred when a company obtains financing for capital expenditures. Costs include repayment interest rate, fees, down payment and cash paid at loan closing. Some companies include internal costs such as labor related to financing application.
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Real Financing Cost definition from the mortgage glossary at QuickenLoans.com. Learn mortgage terms and jargon with the Quicken Loans Mortgage Glossary.
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Jun 1, 2006 ... both likely to exhibit trends and may be I(1) series. In theory, the real financing cost of capital should be I(0) over the very long-run. It cannot rise ...