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Cost of Capital
S/F/167. Why do listed companies calculate their cost of capital and what difficulties may the Chief Financial Officer encounter when trying the calculate the cost of capital?
- WORDS:
- 4100
- DATE:
- 2008
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- 49.99 GBP
The paper examines the cost-of-capital theory and its practical application in calculating capital budgeting. The role of the Chief Financial Officer (CFO) is discussed, the methods of estimating the cost of capital are considered using the example of Eastman Chemical Company.
KEYWORDS: Cost of capital, Chief Financial Officer, budget,
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