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.



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Corporate Finance Copyright © 2023 by Kenneth S. Bigel is licensed under a Creative Commons Attribution 4.0 International License, except where otherwise noted.

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