Chapter 12: Cost of Capital Key Concepts and Skills Know how to determine a firm’s cost of equity capital Know how to determine a firm’s cost of debt Know how to determine…
Review Chapter 13 and Chapter 14 Chapter 13 Outline Expected Returns and Variances of a portfolio Announcements, Surprises, and Expected Returns Risk: Systematic and Unsystematic…
COST OF CAPITAL AND Chapter 11 The Dividend Growth Model Approach Can be rearranged to solve for RE * Example Suppose that a company just paid a dividend of $2.50 per share.…