The costs of debt in the short period - methods of estimation

Náklady cizího kapitálu v krátkém období - metody odhadu

Lucie Rudolfová

Oceňování, 2019, vol. 12, issue 3, 34-54

Abstract: The article examines methods that can be potentially used for the estimation of the cost of debt of Czech companies in the short term (1st period of the two-phase evaluation). The overview and basic description of these methods is the first part of this article. The available methods are compared according to the factors which they reflect and according to the difficulty of the estimate. The second part consists of the application of the chosen methods on two real entities. This section is followed by the recommendations regarding the appropriate method that can be used for the estimate of costs of debt including the scheme showing possible decision process which leads to the choice of a suitable approach.

Keywords: Costs of capital; Cost of borrowings; Cost of debt; Business valuation; Náklady kapitálu; Cizí kapitál; Náklady cizího kapitálu; Oceňování podniků (search for similar items in EconPapers)
JEL-codes: G32 (search for similar items in EconPapers)
Date: 2019
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DOI: 10.18267/j.ocenovani.234

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