Cost of capital is one of the most important and key tools in many financial and management decisions that is affected by several factors. Financial leverage, profitability, shareholder composition, board of directors composition, type of company activity, liquidity, and company size are among the most important of these factors, also considering that it is the ability to attract capital and provide financing. The purpose of this study is to investigate the relationship between the readability of financial reporting and cost leadership strategy and the cost of capital. The statistical population of the study is the companies listed on the Tehran Stock Exchange and the sample under study includes 165 companies listed during the years 2010 to 2024. The research method is descriptive and in terms of the relationship between variables, it is a combination of causality and in terms of purpose, it is applied. The regression method and panel data as well as the fixed effects model have been used to process and test the hypotheses. The results obtained from the hypothesis analysis showed that the readability of financial reporting and cost leadership strategy have a positive and significant effect on the cost of capital, and cost leadership strategy has a negative and significant relationship with the cost of capital.