The Corporate Cost Of Capital Theory And Applied Research

The thesis' s research motive originates the interest rate' s economic leverage. Enlightened by marketization of interest rate, from macroeconomic policy association of microeconomic decision, also equally have the economic lever in the enterprise, namely the problem of the financial leverage. However the way of liability interest rate' s financial leverage in enterprise differs from it in macroscopic economy, because the capital in the enterprise is a synthesizing of liability and equity capital, the enterprise cost of capital not only owns liability interest rate, the equity capital also has cost, it is necessary to take a new look to the enterprise cost of capital. Therefore, what mentioned above causes the author' s motive to research the enterprise cost of capital. With careful attitude, the thesis chooses nature and connotation of the enterprise cost of capital as research starting point. On this foundation I make an objective and in-depth research, which guarantees the accuracy of the research direction. Further deep into studies questions about estimation of cost of capital, and on the other hand establishing a solid theoretical foundation of the thesis, also building a bridge connected theory with practice. Through the research about function of cost of capital in business value, fully explains the economic leverage of the cost of capital in microscopic economy. From this causes the application study of the enterprise cost of capital in enterprise value management, tries to advocate the company to pay attention to the cost of capital, and emphasizes its economic leverage and enterprise value management thought in practice.