Cost of Capital - challenges for companies in current economic environment

Carl Heinz Daube

EconStor Preprints from ZBW - Leibniz Information Centre for Economics

Abstract: In July 2022, the ECB started to gradually increase the key interest rate in order to bring the increased inflation back into the target corridor. An increase in the cost of capital for countries and companies could be observed much earlier. This increase of cost was more significantly caused by the fact that the social and economic conditions in Germany and Europe have changed considerably in recent years. This working paper examines selected conditions regarding their impact on the cost of capital for companies.

Keywords: cost of capital; weighted average cost of capital; inflation; interest rates (search for similar items in EconPapers)
JEL-codes: G10 (search for similar items in EconPapers)
Date: 2023
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Persistent link: https://EconPapers.repec.org/RePEc:zbw:esprep:270872

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