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Some Financial Perspective on Comparative Costs of Capital
Oleh:
Weston, J. Fred
Jenis:
Article from Bulletin/Magazine
Dalam koleksi:
BUSINESS ECONOMICS vol. 26 no. 2 (1991)
,
page 33-37.
Topik:
FINANCIAL
;
financial perspective
;
comparative costs
;
capital
Ketersediaan
Perpustakaan Pusat (Semanggi)
Nomor Panggil:
BB20.1
Non-tandon:
1 (dapat dipinjam: 0)
Tandon:
tidak ada
Lihat Detail Induk
Isi artikel
Empirical studies of international cost of capital comparisons have taken two related forms. One is to compare weighted average costs of capital (WACC) for sample across economies. Sample WACC comparisons may be subject to error because the cost of capital measures may not be applied to appropriate definitions of operating cash flows whose qualitites, time - growth patterns, and risk may differ. Comparisons of riskless rates such as yields on government securities ignore relevant risk differences. No financially derived competitive advantage is likely to exist with : 1. no net tax or subsidy differences 2. capital market and ergonomic integration
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