Chapter
The Impact of Cost of Capital on Cash Flows.
28:06 - 35:10 (07:04)
The cost of capital is a crucial factor in assessing the value of cash flows for a company. If the growth rate is lower than the cost of capital, it becomes difficult to hold value in the long run.
Clips
The high cost of capital can limit a company's ability to grow and be profitable, as they may be discounted at a higher rate than their growth rate.
28:06 - 35:10 (07:04)
Business
Summary
The high cost of capital can limit a company's ability to grow and be profitable, as they may be discounted at a higher rate than their growth rate. This issue is amplified in a high cost of capital environment, where it is challenging to hold value for companies growing at lower rates.