Bringing all concepts together of Cost of Capital and The Weighted Average Cost of Capital, key topic in Advance Financial Management. This topic is about how to compute Cost of Equity, Cost of Debt and Weighted Average Cost of Capital each with different methods and very unique approach.
This topic is taught from initial to advance level with numeric questions on each content in Cost of Capital. Students pursing Accounting & Financial qualification will get clear understanding on all concepts of Cost of Capital in merely one hour. Financial Modelers and Finance Professionals can also get benefit from the topic
File is available for download as well. You may ask pertinent question about the topic and I will be please to answer it.
Introduction to contents of topic the Weighted Average Cost of Capital
Discuss the basic definition and what is the importance of Weighted Average Cost of Capital.
Where Financial/Business Analyst practice Weighted Average Cost of Capital.
Weighted Average Cost of Capital formula and what are the inputs of formula.
Basic definition of cost of equity and methods to compute it.
Capital Asset Pricing Model to compute Cost of Equity.
Key element of Capital Asset Pricing Model - Asset & Equity Beta
Simple question for computing Cost of Equity by using Capital Asset Pricing Model and creating some relationships between Cost of Equity and Equity Beta.
Dividend Valuation Model to compute Cost of Equity.
How to compute growth (Key element of D V M formula) in two different scenarios.
What is Cost of Debt and methods to compute it.
Computation of Cost of Debt through Internal Rate of Return approach.
Types of Weighted Average Cost of Capital and discussion on some arguments.
How to compute Weighted Average Cost of Capital of business, decides to expand in new industry, different from currently where it operates.
Detail scenario on Weighted Average Cost of Capital in case of diversification.
How to compute Weighted Average Cost of Capital of business, already diversified in different industry.
Detail scenario on computation of Weighted Average Cost of Capital, when business is already diversified.
Weighted Average Cost of Capital in case of changed in Financial Risk.
Indicator which allows business to compute its Market Value of Debt,
Unique approach to compute Cost of Equity, when Beta approach is impossible to apply.
Scenario on how to apply MM Proposition II + Tax equation.
Thank you for enrolling in the course of Weighted Average Cost of Capital. File is available to download, allows to practice the topic without watching videos. You may ask pertinent question anytime & I will be pleased to help out.
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