MODELS OF CAPITAL COSTS QUANTIFICATION
MODELS OF CAPITAL COSTS QUANTIFICATION

Summary/Abstract: The present contribution deals with the quantification of capital costs. The contribution is written on a theoretical basis. The costs will be particularly quantified in financing only by equity and only by debt capital and particularly in the so-called mixed financing in which weighted average costs of capital will be quantified. The cost of capital can be seen from three different perspectives: in the assets part of a company, in the liability part of a company and in the part of potential investor. Each of these perspectives or points of view shows the cost of capital differently, but all of them deal with the same number. It is logical that the capital cost should be minimal only in that case when the company market value is maximal.

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