Cost of Capital Author’s Name Institution’s Name The research article selected for the same assignment has a title of “Cost of Capital Structure Determinants of Public Listed Companies in Saudi Arab”. The study has collected the data from 93 listed companies in the Horizon of Saudi Arab to find out the factor of leverage equally efficient in the Saudi Organizations as well. References Easley D. & O'hara M. (2004). Information and the cost of capital. The journal of finance 59(4) 1553-1583. Errunza V. R. & Miller D. P. (2000). Market Segmentation and the Cost of Capital in International Equity Markets (Digest Summary). Journal of Financial and Quantitative analysis 35(4) 577-600. [...]
In computing the cost of capital, which sources of capital should be considered? Why do firms calculate their weighted average cost of capital? As the financial manager for your company, explain how you would use the cost of capital of your firm, or a firm you are familiar with, to determine the required rate of return on investment opportunities. Search the SEU library or the internet for an academic or industry-related article. Select an article that relates to cost of capital and doing business in Saudi Arabia. For your discussion post, your first step is to summarize the article in two paragraphs describing what you think are the most important points made by the authors (remember to cite the information, as appropriate). For the second step, include the reference listing with a hyperlink to the article. Please note, do not copy the article into your post and limit your summary to two paragraphs. Let me know if you have any questions. Enjoy your search. The weighted average cost of capital (WACC) is used in many calculations in corporate finance. It is important to understand how and why it is calculated to understand why it is used so often.