Cost of Capital
Abstract
After choosing a project, the next crucial step is to finance it. The project's success or failure may be determined by the discount rate chosen during the capital budgeting process. Equity and debt are the most popular forms of funding that are utilised to fund projects. Depending on how well they balance risk and return, these financing options are employed. The type of financing used for the project determines the discount rate.
Fields of Study & Subjects
Financial Reporting and Valuation Research
Capital Investment and Risk Analysis
Financial Analysis and Corporate Governance
Publication details
- Journal / source
- Routledge eBooks
- Pages
- 83–93
- Publication date
- 26 February 2026
- Language
- EN
- Document type
- Book chapter