The theory on modern capital structure and cost of capital assumes the existing of the optimum capital structure which minimizes the cost while maximizescorporate value. Currently, there are many methods to determine the optimum capital structure as well as Weighted Average Cost Of Capital, cost of each capital component. Nevertheless, there are many difficulties in the curve quantification method. This article discusses on different methods to determine Weighted Average Cost Of Capital (WACC) and cost of each capital component. |
