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Unit 5c
, LEARNING OUTCOMES:
Discuss the importance of the cost of capital for an entity
Identify, calculate and interpret the various costs of capital
UNIT 5c : Cost of Capital
3
, ASSESSMENT CRITERIA
Perform advanced calculations to determine a firm’s cost of equity
capital as well as debt capital including the various debt instruments
available;
Understand the concept of a firm’s overall cost of capital and
perform advanced calculations based on market values and costs of
different instruments to calculate a WACC; and
Understand the pitfalls of overall cost of capital and how to manage
and adjust them for different risk scenarios.
UNIT 5c : Cost of Capital