Capital

Definition of ‘Capital’

Capital is the cash or cash equivalents injected into a business by the owners and investors.

Together with retained earnings it forms part of the equity of the business.

For a company it is sometimes referred to as stock or share capital.

Financial Projections Template Capital Definition

The capital definition for use in the financial projections template is money invested in the business by owners or investors.

The cost of having capital is the percentage of the business given to the owners and investors. Unlike debt, capital does not pay interest and so does not create an interest expense in the income statement.

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