Sources of Finance and Cost of Capital ( = Business Finance)

Determine cost of equity using CAPM (capital asset pricing model) Cost of Equity = Risk-Free Rate + Beta * (Market

Weighted average cost of capital (WACC) Weighted average cost of capital (WACC) is a calculation of a firm’s cost of capital in which

Capital Asset Pricing Model (CAPM) The capital asset pricing model (CAPM) is a model used to determine a theoretically appropriate required rate of

Cost of redeemable debt Redeemable debts are those which will be repaid to the debt investors after a specific period,

Cost of irredeemable debt Irredeemable debt is debt that has no specific redemption date or maturity period. The issuing authority

What is Cost of Equity? The cost of equity is the return ( rate of return) a company  pays to its equity

CAPITAL  STRUCTURE AND FINANCE COSTS LEARNING OBJECTIVES I.THE CAPITAL STRUCTURE OF A LIMITED LIABILITY COMPANY II.ORDINARY SHARE CAPITAL III.RIGHTS ISSUES

In finance, the capital asset pricing model (CAPM) is a model used to determine a theoretically appropriate required rate of

Preferred stock (also called preferred shares, preference shares or simply preferreds) is a type of stock which may have any