This course is about the cost of capital. Every time and entrepreneur has a new business idea or a firm decides to invest in a new plant, equipment or enter in a new market, the first concerns are: 1. Will the investment create value? 2. How to finance it? The cost of capital has to purpose to answer to both of this questions, so it is a central point in capital budgeting.
Every entrepreneur or manager must know in which way it is calculated.
The course is structured in three video lectures with US English captions and two articles. The overall time for the video lectures is about 35 minutes but I strongly suggest students not to watch all the lectures in a row.
Keep calm and study corporate finance. ;-)
After completing this lecture students will be able to understand the meaning of the weighted average cost of capital and its applications
This lecture explains in which way the capital asset pricing model (CAPM) is applied to calculate the cost of equity
After completing this lecture students should be able to understand the meaning of yield-to-maturity of coupon bonds and to calculate the pre-tax cost of debt of leveraged companies
Master of Science in Financial Management, MBA
Former professor of Macro and Microeconomics in an American University.
Based in Turin (Italy), graduated in Edinburgh (UK).
After ten years as a risk manager in the insurance industry in Turin and Milan (ITA), I moved towards the consultancy career.
I have 13 years of working experience in corporate finance and cost of capital evaluation, working with SMEs, publicly-traded companies, municipal and public-owned entities, and insurance companies.