Sorry about the delay in replying. The most common method to determine Cost of Capital is WACC - Weighted Average Cost of Capital (we have an entire module in our advanced course that focuses on this topic).
Jul 04 2013 11:55 AM
Very basically put cost of capital is the sum of your cost of equity + cost of debt. The Cost of debt is nothing but the interest rate you have to pay on debt.
Cost of equity is the return that an investor needs to buy shares in your company. This is typically calculates using the CAPM or the Capital Asset Pricing Model.