Many BV practitioners believe quantifying cost of capital is an exercise in arithmetic, figuring, once the arithmetic is done, they have successfully “calculated” the cost of capital. But cost of capital is not this at all. Cost of capital is unobservable and can only be estimated. Practitioners are faced with an array of decisions: which cost of capital model and what methodologies for each model input. Join Michael Crain as he shares a unique style of learning about cost of capital in plain language and illustrations.