cost fo capital

[sagardhadve]

hi friends
posting ppt
on cost of cap finance
very helpful
from mba student

 

[rara_avis]

Weell, in simple terms
cost of capital (WACC) = cost of equity + cost of debt

there is no clear cut formula to calculate cost of equity (wen it comes to real world, book gives the formula)
when i was doing my project in real estate, i had to find the cost of equity. This i was able to find, by talking to the CFOs and MDs and Presidents of the Real EstaTE funds.

Cost of debt is the current market rate at which the banks are ready to lend. Now this may differ by a few bps fpr different players in the market depending on their market repo, deep pockets, credit rating etc.

With these two values determined, cost of capital is determined by taking weighted avergae of these two.

~rara avis

 

[vivek_shr2]

hii can i know -- how to do credit rating to find out kd(cost of debt), actually am doing a project on wacc..??!!

 

[saprenikhil123]

hi .. thnxx!! for the useful upload .. if anybody has anything on equity risk premium .. it would be helpful ..

 

[nidhi bansal]

power point presentation(PPT) on cost of capital for teaching

 

[iyervsr]

Thanks very much for the powerpoint on cost of capital which is very useful

 

[poonamasingh]

thanks for the wonderful info.. needed the same..