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Cost-of-capital is central to economists’ thinking about how firms should (and do) invest their financial capital, and to measuring the value of a firm. Brent Hueth will argue that the cost of “equity” capital for many co-operative businesses is, if not zero, then close to it. He will interpret the relevance of this finding in the context of private capital structure and investment decision making, as well as public tax and regulatory treatment of co-operatives.
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