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Fundamentals of Corporate Finance
book

Fundamentals of Corporate Finance

by Robert Parrino
October 2013
Beginner
656 pages
29h 50m
English
Wiley
Audiobook available
Content preview from Fundamentals of Corporate Finance

11

The Cost of Capital

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Learning Objectives

images Explain what the weighted average cost of capital for a firm is and why it is often used as a discount rate to evaluate projects.

images Calculate the cost of debt for a firm.

images Calculate the cost of common stock and the cost of preferred stock for a firm.

images Calculate the weighted average cost of capital for a firm, explain the limitations of using a firm's weighted average cost of capital as the discount rate when evaluating a project, and discuss the alternatives to the firm's weighted average cost of capital.

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Publisher Resources

ISBN: 9781118218105