principles of corporate finance—chap009讲义教材.pptVIP

;Company Cost of Capital;Company Cost of Capital;IMPORTANT E, D, and V are all market values of Equity, Debt and Total Firm Value;Weighted Average Cost of Capital;Capital Structure – how a firm finance its overall operation using debt, equity or the mix of debt equity. Expand CAPM to include CS r = rf + β ( rm - rf ) becomes requity = rf + β ( rm - rf ) ;Measuring Betas;Measuring Betas;Measuring Betas;Estimated Betas;Implication;Company Cost of Capital;Capital Structure COC;Company Cost of Capital (COC) is based on the average beta of the assets The average Beta of the assets is base