Definition of ‘New Capital’
New capital is the cash or cash equivalents injected into a business by the owners and investors during the year.
Together with retained earnings, capital forms part of the equity of the business.
For a company capital is sometimes referred to as stock or share capital.
Financial Projections Template Capital Definition
The new capital definition for use in the financial projections template is money invested in the business by owners or investors during the year.
The cost of having new 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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