I have just come from a couple business appraisals related training venues and both covered cost of capital as one of the key subjects that continue to draw the attention of business appraisers.   I must say, for as much attention as this area has received over the years, I am not sure we have made much progress in resolving the protocols for how to develop and support a well-reasoned cost of capital for use in the appraisal process.   Twenty years, ago it seemed like the only major difference many appraisers had was in the realm of unsystematic industry and specific company risk.   Now all elements of the traditional build-up model are open for debate and we are seeing a proliferation of methods and models to assist in cost of capital determinations.   Bottom line is this critical area of practice requires a knowledgeable professional to adequately conduct sufficient qualitative and quantitative analysis to support their expressions of professional judgment after a thorough consideration of all relevant facts.  More to come on this aspect of business and IP appraisal.