STRATEGIC FINANCE
Student I.D.#: SP16-EX-0053
Program: MBA
Name: Malik.M.Umair Wasif
Student I.D.#: SP16-EX-0053
Program: MBA
Course Title: A.R.M
Instructor: Sir Umair Baig

TABLE OF CONTENT S.NO. | CONTENTS | PAGE NO. | 1 | Scope of the research paper | 3 | 2 | Introduction | 3 | 3 | Research methodology | 3-4 | 4 | Conclusion | 4 | 5 | Limitations and future direction of research | 4-5 | | (a) Limitations | 4 | | (b) Future direction of research | 5 |

BEST PRACTICES IN ESTIMATING COST OF CAPITAL 1. THE SCOPE OF THE RESEARCH PAPER:
It is a survey research paper presenting the results of the cost of capital survey of advisors, corporations etc showing a close alignment among the groups on the use of common theoretical framework and on many aspects of estimation. Variations are found on large number of joint choices regarding cost of capital. 2. INTRODUCTION TO THE TOPIC:
The paper is about presenting evidence that how some of the most financially sophisticated companies and financial advisers estimate capital cost. The evidence to be presents is valuable in several aspects. First is to identify the most important ambiguities in the application of cost of capital theory and the second is helping interested companies benchmarking their cost of capital estimation practices against best practice peers. Third is that the evidence sheds light on the accuracy with which the capital costs can be reasonably estimated. The cost of capital can be computed by the following, i. The weighted average cost of capital. ii. Sample selection. iii. Survey findings. iv. Impacts of various assumptions for using CAPM.

3. RESEARCH METHODOLOGY:
This paper presents the results of cost of capital survey of 27 highly regarded corporations, ten leading financial advisors, and seven best-selling text books and trade books.
In this