Application of Weighted Average Cost of Capital in European Market, Based on 2017 Great Portland Estate Plc (GPE)

DOI

10.2991/meess-18.2018.48How to use a DOI?

Keywords

Dividend discount model (DDM), Capital asset price model (CAPM), Capital structure of the company, the cost of debt, the cost of equity, Calculation of WACC.

Abstract

To explore the relationship between capital structures and cost of capital, related research and calculations have been done, based on the latest performance of Great Portland Estate plc (GPE) in 2017. Concept of Weighted Average Yield to Maturity is used to calculate the cost of debt by dividing all interest cost to total debt, while Capital Asset Price Model and Dividend Discount Model are used to calculate and then decide the cost of equity, and finally the Weighted Average Cost of Capital of this company will be figured out.

Copyright

© 2018, the Authors. Published by Atlantis Press.

Open Access

This is an open access article distributed under the CC BY-NC license (http://creativecommons.org/licenses/by-nc/4.0/).

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TY  - CONF
AU  - Jiayun Liu
PY  - 2018/08
DA  - 2018/08
TI  - Application of Weighted Average Cost of Capital in European Market, Based on 2017 Great Portland Estate Plc (GPE)
BT  - Proceedings of the 2018 International Conference on Management, Economics, Education and Social Sciences (MEESS 2018)
PB  - Atlantis Press
SP  - 259
EP  - 263
SN  - 2352-5398
UR  - https://doi.org/10.2991/meess-18.2018.48
DO  - 10.2991/meess-18.2018.48
ID  - Liu2018/08
ER  -