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