"An Investigation into the Valuation of Cost of

Capital and the Empirical Study on the UK

Economy: Case Study of Barclays Bank PLC”

Research aims and objective

Aim of the Research

This study is aimed to investigate into the various methods used for the evaluation of Cost of
Capital in the Banks in United Kingdom, and also it analyses the effect of Cost of Capital in
the economy of the country UK. This research is planned to carry out focused to the Barclays
Bank Plc, UK. This research is also aimed to provide suggestive recommendations for the
effective management of the Cost of Capital in UK to produce economic advantages to the
country.

Research Objectives
The main objective of this research is to identify various methods used for calculating the
Cost of Capital by the banks in UK, and the other objectives are as follows:

1. To describe the Cost of Capital and analyse various methods used for evaluating or
estimating the Cost of Capital

2. To determine and analyse various factors that determine the Cost of Capital and the
factors that has direct impact on Cost of Capital

3. To determine and analyse various forms of Cost of Capital and various approaches
used for determining the Cost of Capital

4. To analyse the effect of Cost of Capital in the economy of the country and provide
suggestive recommendations for the effective management of Cost of Capital to
improve the economic conditions of the country.

Research Question
The solution of the research questions will help to satisfy the objectives of the research given
above, which are:

1. What are the various forms of Cost of Capital and various approaches used for
determining the Cost of capital?

2. What are the factors that used to determine the Cost of Capital?

3. What are the various factors that have direct effect on the Cost of capital?

4. What are the investment trends, economics of banking in UK, and how the firm
valuation relate to the Cost of capital approach?
5. How the Cost of Capital impact on the Economy of the Country and what has to do to
improve the economic conditions of the country?