Cost of capital (CoC) is the cost of capital is the cost of financing a programme or project, taking into account loan repayments and the cost of tying up capital. In the case of private sector investment the cost of capital will include an element distributed as dividends. [Source: Fonseca, C. et al., 2010. Life-cycle costs approach : glossary and cost components. (WASHCost briefing note ; no. 1). The Hague, the Netherlands: IRC. P. 4]