Chapter 12 - Cost of Capital.ppt

Chapter 12 - Cost of Capital Where we’ve been... Basic Skills: (Time value of money, Financial Statements) Investments: (Stocks, Bonds, Risk and Return) Corporate Finance: (The Investment Decision - Capital Budgeting) Assets Liabilities Equity Current Assets Current Liabilities Fixed Assets Long-term Debt Preferred Stock Common Equity Assets Liabilities Equity Current Assets Current Liabilities Fixed Assets Long-term Debt Preferred Stock Common Equity Where we’re going... Corporate Finance: (The Financing Decision) Cost of capital Leverage Capital Structure Dividends Assets Liabilities Equity Current Assets Current Liabilities Fixed Assets Long-term Debt Preferred Stock Common Equity Assets Liabilities Equity Current Assets Current Liabilities Fixed Assets Long-term Debt Preferred Stock Common Equity Assets Liabilities Equity Current Assets Current Liabilities Long-term Debt Preferred Stock Common Equity Assets Liabilities Equity Current assets Current Liabilities Long-term Debt Preferred Stock Common Equity Ch. 12 - Cost of Capital For Investors, the rate of return