[财务管理]Chapter 12 Company Valuation.pptVIP

Topics Covered Geothermal’s Cost of Capital Weighted Average Cost of Capital (WACC) Measuring Capital Structure Calculating Required Rates of Return Calculating WACC Interpreting WACC Valuing Entire Businesses Cost of Capital Cost of Capital - The return the firm’s investors could expect to earn if they invested in securities with comparable degrees of risk. The cost of capital is the weighted average of returns (weighted by market value) on debt and equity, which is equal to the expected rate of return on the portfolio of assets. The cost of capital is the discount rate for evaluating new,