Unveiling the True Cost of Capital: A Game-Changer for Corporate Financing
The article discusses how to figure out the cost of different types of money a company uses. It shows how to calculate the cost of debt, preferred stock, and common stock, and then how to find the total cost of all these. The researchers explain why some types of money are more expensive for a company to use than others. This study is a practical way for students to learn about how companies figure out their financing costs.