APPROACH OF THE COST OF CAPITAL AS A WEIGHTED AVERAGE COST AND AS A MARGINAL COST Cover Image

Abordarea costului capitalului ca si cost mediu si ca si cost marginal
APPROACH OF THE COST OF CAPITAL AS A WEIGHTED AVERAGE COST AND AS A MARGINAL COST

Author(s): Dorel Berceanu
Subject(s): Economy
Published by: Editura Universitaria Craiova
Keywords: cost; equity; debt; return; investment

Summary/Abstract: This paper treats a very delicate and actual problem what appear in corporate finance, namely cost of capital. So, after a short introduction where I present some of reasons what give consistency of this work, I present the cost of capital viewing as a weighted average cost and as a marginal cost. Also, I put in light the main models to calculate the equity cost and the debt cost. Finally, I present some conclusions concerning this subject.

  • Issue Year: XXXVI/2008
  • Issue No: 4
  • Page Count: 6
  • Language: English