How to measure the cost of capital?

Question

How to measurement of cost of capital?

Ahmed Siddiq · Answer

Different ways to calculate it through wacc and capm.

Abdelfattah mohamed hassan Abdelhafez · Answer

:The cost calculation for equity or return them as follows

Property rights / total investment or total funding "shares + securities + loans

thanks for the invitation

I apologized for errors in translation

Renu Jajoo · Answer

To measure the cost of capital we must consider few factors:

1. Cost of equity and cost of debt

2. Prevailing interest rates

3. We should consider internal rate of return for the capital employed

4. Processing (arrangement fee) and sometimes its important to see prior payment charges as well.

5. Opportunity cost for the capital.

Mohammad Iqbal Abubaker · Answer

i AGREE WITH THE Answer added by: Renu Jajoo Finance Manager 29 days ago