Entrepreneur's Cost of Capital Template
Originally published: 30/09/2016 08:24
Publication number: ELQ-26504-1
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Entrepreneur's Cost of Capital Template

Estimate the statistical parameters for determining an entrepreneur's cost of capital

Description
OUTPUTS of the model:

- Hypothetical Fraction of Wealth Invested in Venture by Diversified Investor (per year)
- Standard Deviation of Comparable Public Firm Returns (Partial Commitment)

Portfolio Cash Flow Results (Partial Commitment):
- Expected Harvest Cash Flow of Entrepreneur's Portfolio
- Cash Flow Standard Deviation of Portfolio
- Value of Entrepreneur's Portfolio

Venture Valuation Results (Partial Commitment):
- Value of Entrepreneur's Investment in Venture
- Expected Cash Flow from Investment in Venture

Venture Cost of Capital Estimates (Partial Commitment):
- Entrepreneur's Holding-Period Cost of Capital for Venture
- Entrepreneur's Annualized Cost of Capital for Venture

Entrepreneur's Wealth Allocation (Partial Commitment):
- Fraction of Entrepreneur's Wealth Invested in Venture (Target)
- Fraction of Entrepreneur's Wealth Invested in Market

=> Entrepreneurial Finance, by Janet Kilholm Smith, Richard L. Smith and Richard T. Bliss & Anderson Graduate School of Management - UC Riverside

Purchase the book here: https://www.amazon.fr/dp/0804770913

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