Cost of capital Graziela Costa de Paula Silva, Sergio Antônio Loureiro Escuder

Abstract

The main objective of this article is to discuss in a conceptual way the importance of estimating the cost of capital in private companies. The justification for choosing the theme is based on its relevance in addition to the expectation of contributing to the academic field. The research method used was of a qualitative nature, with research of the bibliographic type. Among the main works, it was possible to conclude that for private companies, capital cost estimation assists, especially in the knowledge of risks, which allows both to allocate internal resources more adequately and more diversely, and to measure performance and better remunerate shareholders. Elements that are fundamental in the strategic development of the company and creation of value.