Chapter 13 The Cost of Capital Learning Objectives 1. Explain what the weighted average cost of capital for a firm is and why it is often used as a discount rate to evaluate…

Chapter 13 The Cost of Capital Learning Objectives 1. Explain what the weighted average cost of capital for a firm is and why it is often used as a discount rate to evaluate…

1. After this module, the student isexpected to:1. Identify the most important characteristics of cost of capital2. Compute cost of capital using common stock, debt, preferred…

CHAPTER 9 THE COST OF CAPITAL (Difficulty: E = Easy, M = Medium, and T = Tough) Multiple Choice: Conceptual Easy: Capital components 1 Answer: c Diff: E . Which of the following…

Slide 19 - 1 CHAPTER 9 The Cost of Capital Cost of Capital Components Debt Preferred Common Equity WACC Slide 2 9 - 2 What types of long-term capital do firms use? Long-term…

Slide 1Cost of Capital Chapter 13 Slide 2 Cost of Capital Defined Cost of capital: percentage cost of permanent funds employed in business, or firm’s capital structure…

Slide 1Aswath Damodaran1 Session 8: Weights and Cost of Capital Dynamics Slide 2 Aswath Damodaran2 Weights for Cost of Capital Calculation The weights used in the cost of…

Slide 115.1 Van Horne and Wachowicz, Fundamentals of Financial Management, 13th edition. © Pearson Education Limited 2009. Created by Gregory Kuhlemeyer. Chapter 15 Required…

Slide 1Copyright © 2009 Pearson Prentice Hall. All rights reserved. Chapter 11 The Cost of Capital Slide 2 Copyright © 2009 Pearson Prentice Hall. All rights reserved.…

Slide 111 - 1 Copyright © 2002 Harcourt, Inc.All rights reserved. CHAPTER 11 The Cost of Capital Cost of Capital Components Debt Preferred Common Equity WACC Slide 2 11…