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Reading 36  Cost of Capital (Layout)
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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.
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Reading 36  Cost of Capital 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. <span><body><html>


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