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Chapter - 9 The Cost of Capital
Chapter Objectives ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Introduction ,[object Object],[object Object]
Significance of the Cost of Capital ,[object Object],[object Object],[object Object]
The Concept of the Opportunity Cost of Capital ,[object Object],OCC .  Equity shares Risk .  Preference shares .  Corporate bonds .  Government bonds .  Risk-free security
General Formula for the Opportunity Cost of Capital ,[object Object],[object Object],[object Object]
Weighted Average Cost of Capital Vs. Specific Costs of Capital ,[object Object],[object Object],[object Object],[object Object],[object Object]
Cost of Debt ,[object Object],[object Object],[object Object]
Cost of Preference Capital ,[object Object],[object Object]
Cost of Equity Capital ,[object Object],[object Object],[object Object],[object Object],[object Object]
Cost of Equity Capital ,[object Object],[object Object]
The Capital Asset Pricing Model (CAPM) ,[object Object],[object Object],[object Object],[object Object],[object Object]
Cost of Equity: CAPM Vs. Dividend—Growth Model ,[object Object],[object Object],[object Object],[object Object]
Cost of Equity: CAPM Vs. Dividend—Growth Model ,[object Object],[object Object],[object Object],[object Object]
The Weighted Average Cost of Capital ,[object Object],[object Object],[object Object],[object Object],[object Object]
Book Value Versus Market Value Weights ,[object Object],[object Object],[object Object],[object Object]
Book Value Versus Market Value Weights ,[object Object],[object Object],[object Object]
Book Value Versus Market Value Weights ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Flotation Costs, Cost of Capital and Investment Analysis ,[object Object],[object Object],[object Object]
Divisional and Project Cost of Capital ,[object Object],[object Object]
Divisional and Project Cost of Capital ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
The Cost of Capital for Projects ,[object Object],[object Object]
The Cost of Capital for Projects ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]

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Ch 09

  • 1. Chapter - 9 The Cost of Capital
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