Author(s)

Huihui Li

Institute of Economics, Jinan University, Guangzhou, China.

As one of the core concepts of corporate financial management, on the one hand, cost of capital is the cost of corporate financing and related to the financing behavior of firms, on the other hand, cost of capital is the necessary rate of return for investors, which decides investment activities. How to calculate cost of capital? What are the influencing factors for cost of capital? These two questions will play a fundamental role in judging whether cost of capital is high in China and promoting the cost reduction task proposed by the current supply-side reform.

Cost of Capital, Influencing Factors, Literatures Review

Li, H. (2019) Cost of Capital: Literatures Review about Calculation Methods and Influencing Factors. Journal of Service Science and Management, 12, 360-370. doi: 10.4236/jssm.2019.123024.