Estimating Cost of Capital for a Privately Owned Business


(MENAFN- ValueWalk) The models that we use to estimate cost of equity and capital in finance are built for publicly traded company, with diversified marginal investors and observable market values for equity and debt. With private businesses, owners/potential buyers tend not to be diversified and there are no observable market values for equity and debt. In this session, I talk about how to overcome those challenges:


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