The Strategy Skills Podcast: Strategy | Leadership | Critical Thinking | Problem-Solving cover image

484: How too much debt impacts cost of capital (Strategy Skills classics)

The Strategy Skills Podcast: Strategy | Leadership | Critical Thinking | Problem-Solving

00:00

Understanding Cost of Capital in State-Owned Enterprises

This chapter explores the interplay between a company's debt and its cost of capital, focusing on a state-owned power utility. It highlights how increasing debt can lower costs up to a certain point, after which risks perceived by credit rating agencies lead to rising costs, influenced by government expectations and construction projects.

Transcript
Play full episode

The AI-powered Podcast Player

Save insights by tapping your headphones, chat with episodes, discover the best highlights - and more!
App store bannerPlay store banner
Get the app