'Tax capital costs' presentation slideshows

CHAPTER 10

CHAPTER 10. Determining the Cost of Capital. Topics in Chapter. Cost of Capital Components Debt Preferred Common Equity WACC. What types of long-term capital do firms use?. Long-term debt Preferred stock Common equity. Capital Components.

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CHAPTER 9 The Cost of Capital

CHAPTER 9 The Cost of Capital. Sources of capital Component costs WACC Adjusting for flotation costs Adjusting for risk. What sources of long-term capital do firms use?. Calculating the weighted average cost of capital. WACC = w d k d (1-T) + w p k p + w c k s

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Lecture 6

Lecture 6. Cost of Capital. What Types of Long-term Capital do Firms Use?. 2. What Types of Long-term Capital do Firms Use?. Long-term debt Preferred stock Common equity Capital components are sources of funding that come from investors.

570 views • 46 slides

What types of capital do firms use?

What types of capital do firms use?. Debt Preferred stock Common equity: Retained earnings New common stock. Stockholders focus on A-T CFs. Therefore, we should focus on A-T capital costs, i.e., use A-T costs in WACC. Only k d needs adjustment.

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CHAPTER 9 The Cost of Capital

CHAPTER 9 The Cost of Capital. Sources of capital Component costs WACC Adjusting for flotation costs Adjusting for risk. What sources of long-term capital do firms use?. Calculating the weighted average cost of capital. WACC = w d k d (1-T) + w p k p + w c k s

478 views • 37 slides

CHAPTER 9 The Cost of Capital

CHAPTER 9 The Cost of Capital. Sources of capital Component costs WACC Adjusting for flotation costs Adjusting for risk. What sources of long-term capital do firms use?. Calculating the weighted average cost of capital. WACC = w d k d (1-T) + w p k p + w c k s

517 views • 37 slides

CHAPTER 9 The Cost of Capital

CHAPTER 9 The Cost of Capital. Sources of capital Component costs WACC Adjusting for flotation costs Adjusting for risk. What sources of long-term capital do firms use?. Calculating the weighted average cost of capital. WACC = w d k d (1-T) + w p k p + w c k s

409 views • 37 slides

CHAPTER 7 The Cost of Capital

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CHAPTER 10 The Cost of Capital

CHAPTER 10 The Cost of Capital. Sources of capital Component costs WACC Adjusting for flotation costs Adjusting for risk. Long-Term Debt. Preferred Stock. Common Stock. What sources of long-term capital do firms use?. Long-Term Capital. Retained Earnings. New Common Stock.

387 views • 31 slides

FINC3240 International Finance

340 views • 22 slides

The Cost of Capital

The Cost of Capital. Corporate Finance. Dr. A. DeMaskey. Learning Objectives. Questions to be answered: What is the cost of capital? What are the component costs? What is the target capital structure? How is each of the component costs and weights estimated?

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The Cost of Capital

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