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CONCEPTUALIZATION OF THE COST OF CAPITAL IN THE THEORY OF ECONOMY AND CONTEMPORARY ECONOMIC SCIENCES

MICHALAK, A.

First published: 2014https://doi.org/10.5593/SGEMSOCIAL2014/B22/S6.015View metrics

Abstract

The problem of capital and its cost was and still is an object of intense discussion in economy. Capital is one of the notions that are often used in the economic sciences but at the same time, it is interpreted in a very different way. It rises a problem to determine its accompanying cost in one definite way. At the beginning, the cost of capital was identified with the cost of obtaining debt capital, in particular with the cost of loan or interest rate. However, this issue has been developing dynamically and currently there is a huge progress in that matter visible. Additionally, it should be emphasized that the use of the theory of the cost of capital in practice still rises many problems. The purpose of the article is to make a review of classical theories referring to the issue of capital and its cost as well as to confront them with a contemporary approach to this problem.

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Publication details

Title
CONCEPTUALIZATION OF THE COST OF CAPITAL IN THE THEORY OF ECONOMY AND CONTEMPORARY ECONOMIC SCIENCES
Authors
MICHALAK, A.
Proceedings
International Multidisciplinary Scientific Conference on Social Sciences and Arts SGEM2014, Book 2
Publisher
STEF92 Technology
Year
2014
Pages
Not available yet
SWS Citekey
MICHALAK2014
ISSN
2367-5659
ISBN
978-619-7105-26-1
Language
en
Publication type
Conference Paper
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Keywords
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