13-01-2025, 09:45 AM
(12-01-2025, 04:03 PM)ghchua Wrote:(11-01-2025, 01:46 PM)weijian Wrote: This is a simple Finance 101 question which gotten an incomplete answer, suggesting either ignorance or avoidance.
Question: What is the cost of capital and is management closely tracking the important metric?
Hi weijian,
They have answered on cost of debt. Since cost of capital is cost of debt plus cost of equity and they have remained silent on their cost of equity, we can assume that their cost of equity is....zero.
hi ghchua,
You might just be right on this because to the controlling shareholder, the cost of OPMI equity is........probably zero.

Or at least for asset gatherers who wish to retain/keep their wealth within their own gene pool while retaining absolute control, their perceived cost of equity is........zero.