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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

  • Provide viewers with a basic understanding of a company’s capital structure.
  • Be able to calculate the cost of debt, preferred stock and common equity.
  • Be able to calculate the WACC.
  • Use of WACC in evaluating company investments.
Last updated/reviewed: April 12, 2018

10 Reviews (26 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
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
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

Prerequisite: Exposure to corporate finance and the four financial statements.

 

Advanced Preparation: None

 

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 .
Course Syllabus
Module 1
Module 2
  12:05Cost of Common Stock
Module 3
  23:39WACC: Calculation, Factors, and Other Comments
Continuous Play
  56:26Calculating Your Corporate Cost of Capital: Corporate Finance Series
SUPPORTING MATERIALS
  PDFSlides: Cost of Capital
  PDFCost of Capital Glossary/Index
REVIEW & TEST
  quizREVIEW QUESTIONS
 examFINAL EXAM