The Cost of Capital: Principles and Prac...
Schill, Michael J.
The Cost of Capital: Principles and Practice
F-1710 | Published February 7, 2014 | 9 pages Technical Note
Collection: Darden School of Business
Product Details
This technical note provides a student primer of firm cost of capital from a conceptual and application perspective. The note provides student intuition on the traditional theory of cost of debt, cost of equity, and weighted-average cost of capital. Moreover, it provides detail on the common approaches to estimating the cost of capital. Specific examples are provided. The note is updated with market data from 2015.
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