cost of the external financing of non-financial corporations

What is cost of the external financing of non-financial corporations?

cost of the external financing of non-financial corporations definition and meaning on Finance terms:
The cost incurred by non-financial corporations when taking up new external funds. For euro area non-financial corporations, it is calculated as a weighted average of the cost of bank lending, the cost of debt securities and the cost of equity, based on the amounts outstanding (corrected for valuation effects) and deflated by inflation expectations. <

 

reference: https://www.ecb.europa.eu/home/glossary/html/index.en.html

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