Hitchner Updates the Risk/Return Spectrum for Cost of Capital

Business Valuation UpdateVol. 29 No. 11
November 2023
cost of capital
cost of capital, discount rate, risk analysis, cost of equity

Summary

A good visual to use for checking the reasonableness of your cost of capital estimate is the spectrum of rates in the market. Jim Hitchner (Financial Valuation Advisors Inc.) has done an update to this spectrum, which can be used in valuation reports and in court.