CF2 Ch 09 The Cost of Capital 公司财务与金融 课件.pptVIP

CHAPTER 9 The Cost of Capital Topics Cost of Capital Components Debt Preferred Common Equity WACC What types of long-term capital do firms use? Long-term debt Preferred stock Common equity Capital Components Capital components are sources of funding that come from investors. Accounts payable, accruals, and deferred taxes are not sources of funding that come from investors, so they are not included in the calculation of the cost of capital. We do adjust for these items when calculating the cash flows of a project, but not when calculating the cost of capital. Before-tax vs. After-tax Capital C