Cost of Capital
Consultants at Bespoke Insights have extensive experience in providing cost of capital estimates in commercial and regulatory settings.
Our work has had impact in regulatory determinations, commercial practice and the academic literature. For example, our work on how dividend imputation affects the corporate cost of capital has been published in leading journals (such as the Journal of Financial Economics). In the regulatory area we prepare expert reports on a range of cost of capital issues, for example, the empirical estimation of cost of capital parameters.
Corporate work often involves the preparation of a cost of capital estimate for the firm to use as a discount rate in the evaluation of proposed new projects.
Our clients seek our advice on:
- Performing annual cost of capital reviews
- Estimating cost of capital when evaluating new projects or for the purposes of impairment testing
- Calculating appropriate hurdle rates
- Preparing regulatory submissions