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The cost of equity capital on capital market (Koszt kapitalu wlasnego na rynku kapitalowym)

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  • Radoslaw Winiarski

    (Zaklad Bankowosci i Rynkow Pienieznych, Katedra Systemow Finansowych Gospodarki, Wydzial Zarzadzania Uniwersytetu Warszawskieg)

Abstract

As far as capital investments and market acquisitions are concerned every project has its own unique cost of capital. Is it possible that in the era of financial markets and credit rating agencies, rate of return for equity investors is still intuitive category? How to find alternative cost of capital engaged in assets of comparable risk level? In case of capital migration and assets prices fluctuation these are crucial questions. There aren’t known in theory and verified in practice models that wouldn’t be challenged. This sad conclusion concerns developed markets as well as emerging ones.

Suggested Citation

  • Radoslaw Winiarski, 2012. "The cost of equity capital on capital market (Koszt kapitalu wlasnego na rynku kapitalowym)," Problemy Zarzadzania, University of Warsaw, Faculty of Management, vol. 10(39), pages 112-128.
    • Handle: RePEc:sgm:pzwzuw:v:10:i:39:y:2012:p:112-128
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    References listed on IDEAS

    as
    1. Merton, Robert C., 1980. "On estimating the expected return on the market : An exploratory investigation," Journal of Financial Economics, Elsevier, vol. 8(4), pages 323-361, December.
    2. William F. Sharpe, 1964. "Capital Asset Prices: A Theory Of Market Equilibrium Under Conditions Of Risk," Journal of Finance, American Finance Association, vol. 19(3), pages 425-442, September.
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