| Case Title |
Cost of
Capital for a Private Company |
| Case Author(s) |
Sowmya S.
|
| University |
T. A. Pai Management Institute
(TAPMI), Manipal, India |
| Abstract |
There are some practical difficulties in using the weighted average
cost of capital (WACC) as a discount rate for evaluating projects in the
context of a private limited company. In the absence of market prices for
the equity of such a firm, standard capital asset pricing models (CAPM)
cannot be applied. This note outlines an indirect and roundabout way of
estimating WACC in such contexts. |
| Available In |
MIP Case Collection |
| Publisher |
T. A. Pai Management Institute (TAPMI),
Manipal, India |
| Publisher Case No. |
1998-2000-10 |
| Distributor(s) |
T. A.
Pai Management Institute (TAPMI), Manipal, India
|
| Pub/Rev Date |
04/01/2000 |
| ISBN |
|
| Case Length |
6 |
| Teaching Note |
No |
| Pub TN Ref No. |
|
| Pages (TN) |
|
| Issues |
Cost Of Capital, Project Valuation
|
| Organisation(s) |
|
| Countries |
India |
| Industry |
|
| Period Covered |
1998-2000 |
| Level |
Postgraduate |