How Should We Calculate The Cost Of Capital? | Value Investing News

How Should We Calculate The Cost Of Capital?

  • When you’re thinking about cost of capital, are you calculating that in a traditional, efficient markets, looking at the beta of the stock?
  • Michael Mauboussin: One is, you have, for example, the credit markets.
  • So it should pass, I always say, whatever the cost to capital you come up with should make business sense, it should make common sense to some degree, and of course you want to have it tied to some degree to principles and finance.
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