Cost of Debt:
The interest rate or rates charged to organizations by its lenders for use of the capital.
Cost of Equity:
The rate of return needs by organizations shareholders as compensation for the investment of capital.
A method for pricing products and services where managers evaluate the cost of producing a good or service and then determine their corresponding prices by multiplying by a desired income factor. Cost-Plus pricing needs that a manager have a good sense of what the market demand is for a particular good or service, such that the manager can negotiate between a desired profit factor and what a customer will actually pay for a products or service.