The Corporate Cost Of Capital
Organization: The Southern African Institute of Mining and Metallurgy
Jan 1, 2006
Equity investors and project sponsors have divergent views about expected or minimum returns that should be generated by a mineral project. Irrespective of their views, the fundamental estimation of the corporate cost of capital remains singularly determinable, with additive components of risk and uncertainty often incorporated in the final analysis. This paper discusses and details the fundamental, numerical determination of the corporate cost of capital.