Register now or log in to join your professional community.
How to measurement of cost of capital?
Different ways to calculate it through wacc and capm.
:The cost calculation for equity or return them as follows
Property rights / total investment or total funding "shares + securities + loans
thanks for the invitation
I apologized for errors in translation
To measure the cost of capital we must consider few factors:
1. Cost of equity and cost of debt
2. Prevailing interest rates
3. We should consider internal rate of return for the capital employed
4. Processing (arrangement fee) and sometimes its important to see prior payment charges as well.
5. Opportunity cost for the capital.
i AGREE WITH THE Answer added by: Renu Jajoo Finance Manager 29 days ago
Do you need help in adding the right keywords to your CV? Let our CV writing experts help you.