484: How too much debt impacts cost of capital (Strategy Skills classics)
The Strategy Skills Podcast: Strategy | Leadership | Critical Thinking | Problem-Solving
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.
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