Capital Cost Management and Decision Making

Author: Hazel Johnson
Publisher:
Publish Date: 2002-06-01
Features: This book primarily focuses on the theme of determining the cost of capital, elaborating on the understanding of capital formation and related issues of the cost of capital. It analyzes the main factors influencing the cost of capital of a company, provides a general calculation method for determining the weighted average cost of capital (WACC) of a company, and conducts necessary theoretical analysis and mathematical derivation. Additionally, the book explains how changes in the cost of capital affect capital projects, as well as the various risks and uncertainties included in the cost of capital. The theories presented in the book are both in-depth and easy to understand, with clear and concise language. To better illustrate the points, the book selects a large number of specific asset investment projects and real-world company examples for analysis, further enhancing the operability and practicality of determining the cost of capital in practical work. It serves as an important reference book for modern enterprises to make investment, financing, and financial cost analysis decisions.