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This course provides a comprehensive analysis on how to calculate and use a company’s cost of capital. The cost of capital is calculated for a company’s debt, preferred stock and common stock. Once the cost for each item of the capital structure is determined, the company can calculate its weighted average cost of capital (WACC). The WACC is the discount rate used to evaluate all investments made by the company. 

Learning Objectives
  • Explore a basic understanding of a company’s capital structure.
  • Discover how to calculate the cost of debt, preferred stock and common equity.
  • Discover how to calculate the WACC.
  • Identify the use of WACC in evaluating company investments
Last updated/reviewed: August 22, 2023
15 Reviews (68 ratings)

Reviews

4
Member's Profile
This was a good solid foundational course that covered everything you would want to consider in calculating a cost of capital. Mr. Ori explained everything in a clear and concise manner with slides that were helpful in illustrating his points. Obviously a course of this topic assumes some basic financial background.

3
Member's Profile
This was a rather basic course for anyone vaguely familiar with the material from their college Corporate Finance course. For those in other fields, or for those who have completing forgotten Corporate Finance principles, it is a good review of the basics.

5
Member's Profile
Well organized presentation that provided definitions on key terms and equations for key calculations. Presenter provided a company as an example along with calculations related to that company in an easy to understand format.

4
Anonymous Author
Short but very well structured course. Easy to understand. Long term debt yield need some more explanation and some Some links where we can see current WACOC market trend for different sectors would be a good inclusion.

4
Anonymous Author
This was a pretty good overview and/or refresher course on calculating WACC. Perhaps uses too many simplifying assumptions, but I guess that's OK for a 101-type course.

5
Anonymous Author
Very good coverage of basics. Wish there was a little more exploration on yield calculations and weighting with non-book value debt and PS but otherwise very good!

4
Member's Profile
I think the presenter was very good, his explanations were detailed enough and his presentation of the topic was understandable.

4
Anonymous Author
Good overview of some key financial topics and calculations. Slides were very easy to follow.

4
Anonymous Author
faced paced - worth the time. little more useful for public companies

5
Member's Profile
Great course. The instructor was very informative!

4
Anonymous Author
Good basic overview of WACC calculation

5
Anonymous Author
Good overview course

4
Anonymous Author
Very well presented.

4
Anonymous Author
Nice overview.

Anonymous Author
Good overview

Prerequisites
Course Complexity: Intermediate

Exposure to corporate finance and the four financial statements.

Education Provider Information
Company: Illumeo, Inc., 75 East Santa Clara St., Suite 1215, San Jose, CA 95113
Contact: For more information regarding this course, including complaint and cancellation policies, please contact our offices at (408) 400- 3993 or send an e-mail to .
Instructor for this course
Course Syllabus
INTRODUCTION AND OVERVIEW
  Cost of Capital 13:12
  WACC Calculation10:59
  Capital Asset Pricing Model (CAPM)6:56
  WACC and CAPM for Berkshire Hathaway Inc14:14
  Cost of Capital Calculation4:07
  Capital Factors5:14
Continuous Play
  Calculating Your Corporate Cost of Capital: Corporate Finance Series56:16
SUPPORTING MATERIALS
  Slides: Calculating Your Corporate Cost of CapitalPDF
  Calculating Your Corporate Cost of Capital Glossary/IndexPDF
REVIEW & TEST
  REVIEW QUESTIONSquiz
 FINAL EXAMexam