This study focuses on analyzing the cost of capital as a key element in financial decision-making within manufacturing companies in Indonesia. The main objective is to assess the impact of expected return, dividend policy, and systematic risk on the cost of capital, both simultaneously and partially. A quantitative approach was employed using multiple linear regression analysis, with secondary data collected from annual financial reports and market information spanning the years 2020 to 2024. The findings reveal that jointly, the three independent variables significantly influence the cost of capital. However, on a partial basis, only the expected return variable shows a statistically significant and positive effect. In contrast, dividend policy and systematic risk do not exhibit significant influence, and their directional relationships contradict the initial hypotheses. These results suggest that investors’ return expectations play a crucial role in shaping a company’s capital structure, while the effects of dividend policy and systematic risk require further investigation due to their inconsistent outcomes. This study offers practical insights for corporate management and policymakers in formulating effective financing strategies that are responsive to dynamic market conditions.