1991: Some Financial Perspectives on Comparative Costs of Capital

  • J. Fred Weston


Much has been written on whether firms in some countries have a lower cost of capital than firms in other countries. This chapter first reviews the cost of capital measurement methodologies employed in prior studies of financially derived competitive advantage (FDCA). The problems with these studies motivate use of an alternative methodology based on widely accepted models of asset pricing in the literature of financial economics.1


Asset Price Equity Capital NBER Working Paper Arbitrage Price Theory Weighted Average Cost 
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Copyright information

© J. Fred Weston 2016

Authors and Affiliations

  • J. Fred Weston
    • 1
  1. 1.University of CaliforniaLos AngelesUSA

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