New model predicts firm costs, revolutionizing investment decisions and valuations.
The article introduces a new way to figure out how much it costs for a company to get money from investors. By looking at different factors like the type of industry the company is in, how much its assets are worth compared to its market value, how fast it's expected to grow, and how much experts disagree on its earnings, we can predict this cost pretty accurately. These factors can help companies make better decisions about where to invest their money and how much their business is worth.