Open Educational Resources

Document Type

Lecture or Presentation

Publication Date

Spring 4-15-2022

Abstract

Cost of Capital

  • Compute the component cost of capital for (a) debt, (b) preferred stock, (c) retained earnings, and (d) new common equity.
  • Describe the weighted average cost of capital (WACC) and how it is used to make investment decisions.

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Creative Commons License
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