Capital use costs

The cost of using physical capital within a period. – In the long term, commercial enterprises will expand or reduce their capital stock until the return on the last unit of capital just covers the cost of its use. These are roughly determined by – financing costs, primarily the capital market interest rate, – real depreciation costs and – fiscal charges, primarily corporate income tax. – See investment, capital, capital ratio, government debt-interest ratio, wealth, interest. – Cf. Monthly Report of the Deutsche Bundesbank of
July 2002, p. 43 f.

Attention: The financial encyclopedia is protected by copyright and may only be used for private purposes without express consent!
University Professor Dr. Gerhard Merk, Dipl.rer.pol., Dipl.rer.oec.
Professor Dr. Eckehard Krah, Dipl.rer.pol.
E-mail address: info@ekrah.com
https://de.wikipedia.org/wiki/Gerhard_Ernst_Merk
https://www.jung-stilling-gesellschaft.de/merk/
https://www.gerhardmerk.de/