Subject category:
Finance, Accounting and Control
Published by:
Ivey Publishing
Version: 2002-04-16
Abstract
Two managers attending an executive education course attempt to develop a cost of capital estimate for a leading telecommunications company. The two managers are confused about the costs of various sources of capital, the calculation of the overall corporate cost of capital, and the appropriate use of the hurdle rate. They must investigate the concept of cost of capital, review historical data on risk premiums, develop a process for estimating the various components of the cost of capital, and determine the corporate cost of capital.
Subject category:
Finance, Accounting and Control
Published by:
Ivey Publishing
Version: 2002-01-10
Length: 9 pages
Data source: Field research
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Abstract
Two managers attending an executive education course attempt to develop a cost of capital estimate for a leading telecommunications company. The two managers are confused about the costs of various sources of capital, the calculation of the overall corporate cost of capital, and the appropriate use of the hurdle rate. They must investigate the concept of cost of capital, review historical data on risk premiums, develop a process for estimating the various components of the cost of capital, and determine the corporate cost of capital.
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Subject category:
Finance, Accounting and Control
Published by:
Ivey Publishing
Version: 2002-01-10
Length: 9 pages
Data source: Field research