Home  Journals  Economic Analysis: Theory and Practice  16(181) - 2010 June

The analysis of the weighted average cost of the invested capital in system of the analysis of a value chain

Available online: 27 May 2010

Subject Heading: THEORY OF ECONOMIC ANALYSIS

JEL Classification: 

The objective of this article is economic analysis of one of primary factors of the value of companies - the weighted average cost of capital. The offered algorithms allow estimating influence on the weighted average cost of capital of such factors, as specific weight of sources of the capital and their cost. Models of cost of equity and debt are developed. The analysis is considered as the tool by means of which strategy of the future development of the organization is estimated. Article can be useful to experts of the financial services, making financial decisions in a context of the value based management.

Keywords: economic analysis, value chain, value drivers, weighted average cost of capital, cost of equity, cost of debt

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ISSN 2311-8725 (Online)
ISSN 2073-039X (Print)

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