In Section 2, we introduce the cost of capital and its basic computation.
Section 3 presents a selection of methods for [...]
Section 4 discusses issues an analyst faces in using the cost of capital.
Answer
estimating the costs of the various sources of capital.
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Open it This reading is organized as follows:
In Section 2, we introduce the cost of capital and its basic computation.
Section 3 presents a selection of methods for estimating the costs of the various sources of capital.
Section 4 discusses issues an analyst faces in using the cost of capital.
Original toplevel document
1. INTRODUCTION r, is to estimate the cost of capital for the company as a whole and then adjust this overall corporate cost of capital upward or downward to reflect the risk of the contemplated project relative to the company’s average project.
<span>This reading is organized as follows: In the next section, we introduce the cost of capital and its basic computation. Section 3 presents a selection of methods for estimating the costs of the various sources of capital. Section 4 discusses issues an analyst faces in using the cost of capital. A summary concludes the reading.
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