The cost of capital is the expression used in finance for the cost of a company's funds (primarily debt and equity) or, from an investor's point of view, the required rate of return on a company's securities. It is the fundamental discount rate used in a discounted cash flow analysis to evaluate investment projects of a company since it is the minimum return that investors expect for providing capital to a company, thus setting a return benchmark that a project should meet.
This course:
- Reviews alternative approaches to estimating the cost of capital, focusing on the Capital Asset Pricing Model (CAPM) and weighted average cost of capital (WACC) calculation.
- Describes common proxies for the risk-free rate and market return.
- Discusses alternative ways to estimate a project’s beta and how to adjust for the amount of leverage used.
- Details how to estimate the cost of debt.
- Introduces advanced multi-factor versions of the CAPM.
- Teacher: usman data
SKU *: crs-1541287
Sell price $: 24.00
Course Preview:
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Course Short Description:
This course covers how to estimate your company's Cost of Capital and where to use the results.
credit Hours: 0
CPE Credits Awarded *: 1
Approval Status: - None -
Course is for: ** Main Course Library **
Course Duration: 1
Complexity of Content: Foundational
Suppress in lists: No
Last Updated/Reviewed Date: March 21, 2024
Prerequisitses:
Prerequisite: Previous experience in finance
Advanced Preparation: None
Learning Objective:
- Review the components that make up a company’s cost of capital.
- Establish alternative approaches and best practices for estimating the different parameters.
- Improve your ability to develop a more accurate cost of capital discount rate for your investment project evaluations.
Course Type: CPE Course
Format: On Demand
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Field of Study: Finance
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