The determination of an appropriate cost of capital is a critical aspect of financial decision-making for chemical corporations. This paper aims to explore the various cost of capital concepts applicable to the chemical industry and provide guidance on choosing the most suitable approach. Through a comprehensive literature review, this study evaluates the strengths and limitations of three primary cost of capital concepts: the weighted average cost of capital (WACC), the adjusted present value (APV), and the risk-adjusted discount rate (RADR) approach. Additionally, it emphasizes the significance of considering industry-specific risk factors, such as raw material price volatility, environmental regulations, and technological advancements, when estimating the cost of capital. By applying these concepts to a sample of chemical corporations, the study conducts a comparative analysis, highlighting the variations in estimated cost of capital and their implications for investment decisions. The findings provide insights into the suitability of each concept, considering the unique characteristics and strategic objectives of chemical corporations. Ultimately, this research offers practical recommendations for selecting an appropriate cost of capital concept and highlights the impact of this choice on financial decision-making within the chemical industry. The results contribute to enhancing the accuracy of cost of capital estimation and optimizing investment evaluations in the pursuit of sustainable financial performance for chemical corporations.