Economics at your fingertips  

Flotation Costs and the Weighted Average Cost of Capital

John R. Ezzell and R. Burr Porter

Journal of Financial and Quantitative Analysis, 1976, vol. 11, issue 3, 403-413

Abstract: The weighted average cost of capital (Ko) is presented in virtually all textbooks in financial management and capital budgeting as a practical concept fundamental to the actual selection of optimal financial and investment alternatives. As often employed Ko can be defined aswhereKo = the weighted average cost of capital,Ks = the cost of equity capital,Kb = the cost of debt capital,S = the market value of the firm's equity,B = the market value of the firm's debt, andV = S + B, the total market value of the firm.

Date: 1976
References: Add references at CitEc
Citations: Track citations by RSS feed

Downloads: (external link) ... type/journal_article link to article abstract page (text/html)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link:

Access Statistics for this article

More articles in Journal of Financial and Quantitative Analysis from Cambridge University Press Cambridge University Press, UPH, Shaftesbury Road, Cambridge CB2 8BS UK.
Bibliographic data for series maintained by Keith Waters ().

Page updated 2020-02-21
Handle: RePEc:cup:jfinqa:v:11:y:1976:i:03:p:403-413_02