公司理财英文版第十四章.pptVIP

Key Concepts and Skills Know how to determine a firm’s cost of equity capital Know how to determine a firm’s cost of debt Know how to determine a firm’s overall cost of capital Understand pitfalls of overall cost of capital and how to manage them Chapter Outline The Cost of Capital: Some Preliminaries The Cost of Equity The Costs of Debt and Preferred Stock The Weighted Average Cost of Capital Divisional and Project Costs of Capital Flotation Costs and the Weighted Average Cost of Capital Why Cost of Capital Is Important We know that the return earned on assets depends on the risk of those ass