Corp Finance 10 Cost of CapitalDebt Equity Financing
What you’ll learn
Calculate weighted average cost of capital (WACC)
Calculate the cost of debt
Calculate the cost of preferred stock
Calculate the cost of common stock
Explain the optimal company capital structure
Understand how taxes impact the cost of capital decision
Requirements
Basic understanding of corporate finance concepts
Description
This course will discusses weighted average cost of capital, debt, and equity financing from a corporate finance perspective.We will include many example problems, both in the format of presentations and Excel worksheet problems. The Excel worksheet presentations will include a downloadable Excel workbook with at least two tabs, one with the answer, the second with a preformatted worksheet that can be completed in a step-by-step process along with the instructional videos.The general idea we want to keep in our mind is that businesses are looking to invest assets in order to receive a return. Capital, or financing, is needed for the capital investments. A company could generate the capital from internal operations, but often looks for other sources of financing to facilitate faster growth and quicker revenue generation.The options to acquire capital include debt financing and equity financing. As a company thinks about their financing options, they should have an understanding of their financing structure. The weighted average cost of capital (WACC) is often used for financing decisions. This course will demonstrate the WACC calculation.Learners will understand how to calculate the cost of debt. One of the primary forms of debt financing are corporate bonds, the cost including interest payments on the bonds. Taxes have a big impact on financing decisions. Bond interest is generally tax deductible.We will also consider preferred stock financing. In many ways preferred stock is similar to debt financing because of the payments that are somewhat standardized. However, preferred stock does not have a maturity date and the payments are not generally tax deductible.The course will demonstrate common stock financing, a form of equity financing. It can be more difficult to value the cost of common stock financing and we will consider methods in doing so.
Overview
Section 1: Introduction
Lecture 1 1105 Cost of Capital Debt Equity Financing Overview
Lecture 2 1110 Weighted Average Cost of Capital WACC
Lecture 3 1115 Cost of Debt
Lecture 4 1120 Cost of Preferred Stock
Lecture 5 1125 Cost of Common Equity
Lecture 6 1130 The Optimal Capital Structure
Section 2: Practice Probs. – The Cost of Capital – Debt / Equity Financing
Lecture 7 OneNote Resource
Lecture 8 1114 Cost of Debt After Tax Prob 1
Lecture 9 1115 Cost of Debt After Tax Prob. 2
Lecture 10 1117 Cost of Debt After Tax Interest Rate Calculation
Lecture 11 1119 Cost of Debt After Tax Interest Rate Calculation
Lecture 12 1120 Calculate Change in Cost of Debt After tax Due to Reduced Tax Rates
Lecture 13 1123 Cost of Preferred Stock Percent
Lecture 14 1126 Financing Common Stock Prob 1
Lecture 15 1127 Financing Common Stock Prob. 2
Section 3: Excel Probs. – The Cost of Capital – Debt / Equity Financing
Lecture 16 1112 Weighted Average Cost of Capital (WACC)
Lecture 17 1114 Cost of Debt After Tax Prob 1
Lecture 18 1115 Cost of Debt After Tax Prob 2
Lecture 19 1117 Cost of Debt After Tax Interest Rate Calculation
Lecture 20 1119 Calculate Bond After Tax Cost to Issue
Lecture 21 1120 Calculate Change in Cost of Debt After Tax Due to Reduced Tax Rates
Lecture 22 1123 Cost of Preferred Stock Percent
Lecture 23 1124 Calculate Preferred Stock Current Yield
Lecture 24 1125 Financing Debt vs Preferred Stock
Lecture 25 1126 Financing Common Stock Prob 1
Lecture 26 1127 Financing Common Stock Prob 2
Business students,Business professionals
Course Information:
Udemy | English | 5h 10m | 2.45 GB
Created by: Robert (Bob) Steele
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