Private Cost of the Capital Model (PCOC)

Dariusz Zarzecki

Published : 2015-02-28

Vol. 58 No. 1 (2015)

Private Cost of the Capital Model (PCOC)

Dariusz Zarzecki

Abstract

In this paper, the Capital Asset Pricing Model (CAPM) and the Arbitrage Pricing Model (APM), i.e. the most widely used models of estimating cost of equity, are presented. In addition, a new model of calculating the private cost of capital is introduced. This model is the Private Cost of Capital Model (PCOC) - a new concept based on the Pepperdine PCOC survey project which was launched in 2007 by J.K. Paglia. It may be worthwhile to conduct a similar survey among private companies in Poland, and other countries, to get direct estimates of the private cost of capital.(original abstract)

Keywords:

Enterprise valuation, Capital cost, Ownership capital, Private enterprise

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Zarzecki, D. (2015). Private Cost of the Capital Model (PCOC). Zeszyty Naukowe Wyższej Szkoły Bankowej W Poznaniu, 58(1). Retrieved from https://journals.wsb.poznan.pl/index.php/znwsb/article/view/1025

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