intermediate

Management accouting — Introduction to Cost of Capital + 7 more topics

Comprehensive AI-generated study curriculum with 2 detailed note modules.

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Course Syllabus

  1. Introduction to Cost of Capital
  2. Cost of Debt
  3. Cost of Preference Shares
  4. Cost of Equity
  5. Weighted Average Cost of Capital (WACC)
  6. Applications and Advanced Considerations of WACC
  7. Cost of Capital for Foreign Investments
  8. Review and Examination Preparation

Study Notes

Introduction to Cost of Capital

The cost of capital is the weighted average of these individual costs. It tells you, on average, how much it costs the company to finance its assets. You'll often hear it called the Weighted Average Cost of Capital (WACC).

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Cost of Debt

You'll learn how to calculate a company's cost of debt using yield to maturity and the after-tax adjustment. You'll understand why interest's tax deductibility lowers the real cost of borrowing. You'll be able to work through a bond-pricing example by hand and know exactly which numbers finance teams plug into WACC.

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