# Cost Of Capital Toolkit

> Estimates discount rates and the optimal financing mix — riskfree rate in any currency, equity ri…

Estimates discount rates and the optimal financing mix — riskfree rate in any currency, equity risk premium including country risk, bottom-up and total betas, synthetic credit ratings from interest coverage, cost of debt, market value of debt, WACC, the implied equity risk premium solved from current index levels, and the cost-of-capital schedule across debt ratios that locates the optimal debt ratio, with an APV cross-check and a stress test under rating constraints. Bundles Damodaran's rating and spread tables, Altman default probabilities, industry-average betas and multiples, and country risk premiums, each tagged with its vintage. Use when estimating a discount rate, WACC, hurdle rate, cost of equity or cost of debt, unlevering or relevering a beta, when a company has no credit rating, when estimating the equity risk premium priced into the market, when looking up a sector beta or country risk premium, when converting a rate between currencies, or when finding or stressing an optimal capital structure.

- Page: https://ss33.ai/skills/lyndonkl/cost-of-capital-toolkit-17758764979
- Publisher: lyndonkl
- Category: [Finance & Markets](https://ss33.ai/skills/category/finance-and-markets-gri5ar) › [Business & freelance finances](https://ss33.ai/skills/category/finance-and-markets-gri5ar/business-and-freelance-finances-l8tv99)
- Source: https://github.com/lyndonkl/claude/blob/4acc337d4dbdb19da6469eb2504c16669c1cafa1/skills/cost-of-capital-toolkit/SKILL.md

## Skill

This skill's licence does not allow redistribution, so the store does not serve its text. Get it from the author: https://github.com/lyndonkl/claude/blob/4acc337d4dbdb19da6469eb2504c16669c1cafa1/skills/cost-of-capital-toolkit/SKILL.md