The Cost of Capital: The Key To Attract Venture Capitalists

The Cost of Capital and the Weighted Average Cost of Capital.
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Instructed by Giovanni Fasano Business / Finance
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  • Lectures 6
  • Length 41 mins
  • Skill Level All Levels
  • Languages English
  • Includes Lifetime access
    30 day money back guarantee!
    Available on iOS and Android
    Certificate of Completion
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About This Course

Published 3/2016 English

Course Description

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. ;-)


What are the requirements?

  • MS Excel and an open mindset are the only pre-requisites for this course

What am I going to get from this course?

  • Understand the meaning of the cost of capital and its applications in corporate finance
  • Use the capital asset pricing model (CAPM) to work out the cost of equity
  • Calculate the yield-to-maturity for corporate bonds
  • Use the y-t-m to calculate the pre-tax cost of debt
  • Calculate the weighted average cost of debt for projects
  • Understand if a project will create or destroy value for shareholders and bondholders
  • Realize if a new project will create value for shareholders and if it has chances to be financed by venture capitalists

What is the target audience?

  • Entrepreneurs with great ideas of business who need to speak the same language of advisors and venture capitalists
  • Managers, directors and everyone interested in investment evaluations on the point of view of "Main Street" instead of "Wall Street"

What you get with this course?

Not for you? No problem.
30 day money back guarantee.

Forever yours.
Lifetime access.

Learn on the go.
Desktop, iOS and Android.

Get rewarded.
Certificate of completion.

Curriculum

Section 1: Welcome on board
Introduction
Preview
01:21
Section 2: The Cost of Capital
04:01

After completing this lecture students will be able to understand the meaning of the weighted average cost of capital and its applications

15:16

This lecture explains in which way the capital asset pricing model (CAPM) is applied to calculate the cost of equity

16:27

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

Section 3: Conclusions
Congratulations! Do you want more? - Bonus Lecture
Article
Section 4: Extra Material
The Amortization Schedule for a fixed-payments loan
Preview
03:47

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Instructor Biography

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.

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