DISCUSSION ON METHOD TO DETERMINE COST OF CAPITAL IN EXISTING ENTERPRISES

Hoang Van Hue; Nguyen Thi Mo; Bui Thi Thu Thuy; Le Thi Hong Quyen; Nguyen Van Linh

Hoang Van Hue Hung Yen University of Technology and Education
Nguyen Thi Mo Hung Yen University of Technology and Education
Bui Thi Thu Thuy Hung Yen University of Technology and Education
Le Thi Hong Quyen Hung Yen University of Technology and Education
Nguyen Van Linh Mecha Electric and Water Resources Vocational College

Keywords: Enterprises, capital, target capital structure, cost of capital

Abstract

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.

References

Nguyen Minh Kieu, Basic Corporate Finance, Statistical Publishing House 2009.

Nguyen Ngoc Tho, Modern Corporate Finance, Statistical Publishing House-Hanoi 2008.

Le Van Kham, Corporate Finance Management, Education Publishing House.

Eugene F.Brigham, Joel F.Houton, Financial Management, University of Florida.

http://ketoantruong.edu.vn/tai-chinh

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