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How would you go about estimating the cost of capital for a new, early stage or...

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Finance

How would you go about estimating the cost of capital for a new,early stage or emerging growth company? What are the similaritiesand differences in doing so for a mature, established company?

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3.8 Ratings (689 Votes)
Cost of capital basically means weighted return expected by equity shareholder and debt holder Debt holders charge fixed interest and thus whether company is in growth or reached saturation is no relevance to them However    See Answer
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How would you go about estimating the cost of capital for a new,early stage or emerging growth company? What are the similaritiesand differences in doing so for a mature, established company?

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