Calculating Cost of Capital for Banks

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The ability to be able to assess the cost of capital for any organization is important, however for banks there are some particular issues concerning the cost of capital, and particularly the cost of equity. This 16 page paper looks at the issues and considers the way that the cost of capital, made up of the cost of equity and the cost of debt, can be assessed. Models considered include CAPM and discounted cash flow models. The bibliography cites 11 sources.