Jun 25, 2018
In this episode of Financially Simple's Growing Your Business series, Justin takes a look at the relationship between the cost of capital and risk.
There are various knock-on effects from investing in your own business, that might have unforeseen costs and affect the value of your business. Justin goes over the ins and outs of the cost of capital and risk, and how it varies for large vs small and public vs private businesses.
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00:33 - Understanding the Cost of Capital and Risk relationship
03:36 - What is “Cost of Capital”?
06:39 - Questions to ask
08:42 - Why understanding the Cost of Capital matters
10:01 - Example: Big Companies vs Small Business
12:59 - Size Matters
13:52 - Public vs Private Lending
18:06 - What is Company Specific Risk?
20:50 - Summary
Neither Financially Simple, LLC nor its affiliates offer tax or legal advice. Interested parties are strongly encouraged to seek advice from qualified tax and/or legal experts regarding the best options for your particular circumstances. Justin Goodbread, CEO of Heritage Investors, LLC, a Registered Investment Advisor, is an Investment Advisor Representative who offers advisory services through Heritage Investors. The information contained within the podcast is for informational purposes only and not considered investment advice. Seek help from a competent Financial Advisor.