Why should investors invest in a company?

Investors can also be said to be the providers of capital. Investors invest in a company so as to get returns on their investment. These returns are mainly in the form of dividends.

Investors tend to invest in companies with a higher cost of capital has that provide them with more return.

Better out, cost of capital is the return investors are willing to get from their investment.

Investors prefer investment to savings because in savings, the money is dormant and can even reduce in value in a case of inflation. But when invested, time value of money has a little impact since investment grows with time.

Investors should invest in a company to make more investments. With the company, they can make more money.