Describe key criticisms of the cost of capital methodologies.

Describe key criticisms of the cost of capital methodologies.
Cost of capital is an important part of applying the income approach of valuation and a widely debated topic because one cannot observe it. It can only be estimated. 
In order to address this topic, you will likely need to learn about the cost of capital methodologies in order to understand weaknesses in methodologies. The Hitchner text is a starting place but not the end. You may need to perform research other than Hitchner’s text. In a future class, will discuss the cost of capital but you will likely need to work ahead to meet the essay deadline. You might proceed by learning: