RE: Repair Cost: Rear Main Seal? I have a 1997 Lexus ES 300, and it appears to be leaking oil at the rear main seal connection. How much would it cost to replace, and what other parts/belts should be replaced during that same repair (e.g. water pump, timing belt, etc)? have a 1997 Lexus ES 300, and it appears to be leaking oil at the rear main seal connection.
From Wikipedia, the free encyclopedia. In economics and accounting, the cost of capital is the cost of a company's funds (both debt and equity), or, from an investor's point of view the required rate of return on a portfolio company's existing securities.It is used to evaluate new projects of a company.ince in most cases debt expense is a deductible expense, the cost of debt is computed as an after tax cost to make it comparable with the cost of equity (earnings are tax as well). Thus, for profitable firms, debt is discounted by the tax rate.
The cost of capital can be calculated in a number of ways, but for the purpose of this article we will be using the weighted average cost of capital (WACC). This method is comprised of 3 key components: (1) dollar cost of debt, (2) dollar cost of preferred stock, and (3) dollar cost of common stock.The below formula details how to calculate the cost of capital for a company.The cost of capital is comprised of three key risk components: (1) risk free rate of return, (2) business risk premium, and (3) financial risk premium. The risk free rate of return is an investment completely free of risk (i.e. Treasury Note).he below formula details how to calculate the cost of capital for a company. The cost of capital is comprised of three key risk components: (1) risk free rate of return, (2) business risk premium, and (3) financial risk premium. The risk free rate of return is an investment completely free of risk (i.e. Treasury Note).