Sugar Cane Refining And Processing Company: A Comprehensive Case In Measuring A Firms Cost Of Capital

Abstract

The Sugar Cane Refining and Processing Company is a comprehensive case illustrating how a firms financial manager should calculate the firms cost of capital. Senior level undergraduate and graduate corporate financial management courses cover advanced topics in cost of capital and applying the rate in capital budgeting. To cover this relevant topic in a single case, the invented or armchair approach is used. This case is completely contrived but is very educationally effective.