Capital Cost and Profitability in Heavy Machinery Rental Companies for Large Mining (#173)
Read ArticleDate of Conference
July 19-21, 2023
Published In
"Leadership in Education and Innovation in Engineering in the Framework of Global Transformations: Integration and Alliances for Integral Development"
Location of Conference
Buenos Aires
Authors
Gamarra, James
Pastor, Daniela
Cabanilas, Elio
Abstract
Abstract- The purpose of this study is to determine the weighted average cost of capital and profitability in the sample: Zamine Perú S.A.C. - Cajamarca, implementing a quantitative, non-experimental, and longitudinal approach, since it is intended to expose the cost of capital variable by applying the methodologies of the Capital Asset Pricing Model (CAPM) and the Weighted Average Cost of Capital (WACC), and the profitability variable by applying the methodologies of the Economic Value Added (EVA) and the Free Cash Flow (FCF). It was determined that even though this type of company works with a high percentage of debt, which affects the reduction of profitability, it also considerably reduces the cost of capital, so it remains a conservative and profitable company.