The Dependence of the Cost of Capital on Degree of Diversification

Zoran Popovic and Mihailo Paunovic

Montenegrin Journal of Economics, 2018, vol. 14, issue 1, 53-67

Abstract: The subject of this paper are theoretical and methodological aspects of determining the cost of capital on the example of two companies from the Energoprojekt system. The goal is to point out the most significant problems of determining the cost of capital in general, as well as to identify the most significant determinants of those costs. In addition, the paper has a goal to point out to the degree of impact of diversification of those two companies on the cost of their capital.

Date: 2018
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Persistent link: https://EconPapers.repec.org/RePEc:mje:mjejnl:v:14:y:2018:i:1:p:53-67

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