Ch 6 Cost of Capital(公司理财(哈工大深圳研究生院,王苏生).pptVIP

HIT SGS Corporation Finance Chapter 6 COST OF CAPITAL OBJECTIVES Define and compute the cost of capital (WACC-weighted average cost of capital) Review Risk-Return: CAPM Learn how to incorporate risk in DCF valuations DEFINITION OF COST OF CAPITAL The opportunity cost of capital is expected return that the owners of the firm could have earned if they invested in other projects with similar risk ? It recognizes the foregone opportunities when investing in the project as