Required Resources

Please read through all required readings, PowerPoints and links and watch the posted videos.

Open Course

All sections below are provided from Boundless Finance by Lumin Links to an external site.. Please read all sections under each heading:

• Introduction to the Cost of Capital
• Capital Budgeting
• The Role of Risk in Capital Budgeting

All sections below are provided from Interest Rates in Financial Analysis and Valuation by Ahmad Nazri Wahidudin, PhD. Please read all sections under each heading:

• Chapter 5: Cost of Capital, pages 76-83 (NOTE:  sections in chapter 5 are listed in book as being sections for chapter 4 – this is a publisher’s error.  Please follow the page numbers.)
• Chapter 6: Capital Budgeting, pages 84-93

All sections below are provided from Strategic Financial Management by R.A. Hill Links to an external site.. Please read all sections under each heading:

• Chapter 2: Capital Budgeting under Times of Certainty, pages 31-42
• Chapter 3: Capital Budgeting and the Case for NPV, pages 43-53
• Chapter 7: Capital Gearing and the Cost of Capital, pages 91-100

Article

Weighted Average Cost of Capital | Formula | Calculate WACCLinks to an external site.

Weighted Average Cost of Capital (WACC)Links to an external site.

Supplemental Resources

Slides

Boundless Finance by Lumin Power Points

Introduction to the Cost of CapitalDownload Introduction to the Cost of Capital

Capital BudgetingDownload Capital Budgeting

The Role of Risk in Capital Budgeting