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The paper deals with the issue of the corporate cost of capital and its calculation. The main aim of the article is to identify significant factors affecting the value of the costs of capital in the Slovak Republic and to form a model that would allow Slovak companies to compute the value of the costs of capital. We identify the main parameters of our potential model considering six relevant studies that were performed in foreign countries, accepting only those determinants that were applicable in Slovak economic conditions. Then the values of selected parameters are calculated for 32,127 companies of our database and the weighted average costs of capital of the entities in the database, considering the calculation of costs of equity using the CAPM model modified for non-American markets and costs of debt. We use the regression analysis to compute the statistical characteristics of the econometric model. We found out that the significant parameters to be included in the model are levered beta, value of equity, leverage, corporate size, long-term debt capital to total assets, return on assets and on investments, legal form, SK NACE and region. Using the significance F-test and Pearson chisquare test we can claim, that there is a statistically significant relationship between the corporate costs of capital and the legal form and SK NACE classification and we can conclude that there is a statistical significance of the constructed model of the costs of capital quantification. This model can be used to compute the costs of capital of the individual companies in the Slovak economic conditions.

MODELLING OF COSTS OF CAPITAL IN SLOVAK ENTERPRISES