SYSTEMS AND METHODS FOR DETERMINING COST OF CAPITAL FOR AN ENTITY IN A BOTTOM-UP, FULLY RISK-BASED MANNER

摘要

The present invention relates generally to determining cost-of-capital in a bottom-up, fully risk based manner (Fig. 1). In particular, the present invention relates to methods, systems, and software tools for calculating the cost-of-capital for a business entity (Fig. 2). One or more risk drivers are provided by identifying one or more scenarios and quantifying the drivers for each scenario (Fig. 3).