3.1 Chapter Three Learning Outcomes
Learning Outcomes
In this chapter, you will:
- Learn that Corporate Capital Costs and Investors’ Returns are the same.
- Explore each of four Capital Components and their respective cost rankings.
- Provide the individual Capital Components’ respective costs.
- Define and Calculate the Weighted-Average Cost of Capital (WACC).
- Identify the various factors that will affect a firm’s “WACC” and the quantitative effects of the factors.
- Introduce how a project’s Marginal Cost of Capital is utilized in decision-making.
- Achieve a high degree of expertise with the Capital Asset Pricing Model.