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cost of capital

This topic has 1 reply, 2 voices, and was last updated 4 years ago by John Moffat.

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November 25, 2020 at 2:29 pm #596419
Noah098
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sir just wanted to reconfirm, cost of capital, which is used as discount factor is comprised of cost of borrowing from financial institutions and equity shareholders, right? any other thing that affects cost of capital or discount factor in other words?
November 25, 2020 at 6:23 pm #596450
John Moffat
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It is comprised of the cost of equity and the cost of debt. Obviously CAPM is often relevant as well.
Have you watched all of my free lectures for Paper FM?
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