Learn weighted average cost of capital (WACC), debt financing, and equity financing from a Certified Public Accountant. Read more.
Robert (Bob) Steele CPA, CGMA, M.S. Tax, CPI
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Who this course is for:
- Business students
- Business professionals
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
This course will discuss 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.
Our Promise to You
By the end of this course, you will have learned debt and equity financing.
10 Day Money Back Guarantee. If you are unsatisfied for any reason, simply contact us and we’ll give you a full refund. No questions asked.
Get started today and learn more about corporate finance.
Course Curriculum
| Section 1 - Introduction | |||
| Cost Of Capital Debt Equity Financing Overview | 00:00:00 | ||
| Weighted Average Cost Of Capital WACC | 00:00:00 | ||
| Cost Of Debt | 00:00:00 | ||
| Cost Of Preferred Stock | 00:00:00 | ||
| Cost Of Common Equity | 00:00:00 | ||
| The Optimal Capital Structure | 00:00:00 | ||
| Section 2 - Practice Problems | |||
| Cost Of Debt After Tax Problem 1 | 00:00:00 | ||
| Cost Of Debt After Tax Problem 2 | 00:00:00 | ||
| Cost Of Debt After Tax Interest Rate Calculation | 00:00:00 | ||
| Cost Of Debt After Tax Interest Rate Calculation | 00:00:00 | ||
| Calculate Change In Cost Of Debt After Tax Due To Reduced Tax Rates | 00:00:00 | ||
| Cost Of Preferred Stock Percent | 00:00:00 | ||
| Financing Common Stock Problem 1 | 00:00:00 | ||
| Financing Common Stock Problem 2 | 00:00:00 | ||
| Section 3 - Excel Problems | |||
| Downloadable Practice Files | 00:00:00 | ||
| Weighted Average Cost Of Capital (WACC) | 00:00:00 | ||
| Cost Of Debt After Tax Problem 1 | 00:00:00 | ||
| Cost Of Debt After Tax Problem 2 | 00:00:00 | ||
| Cost Of Debt After Tax Interest Rate Calculation | 00:00:00 | ||
| Calculate Bond After Tax Cost To Issue | 00:00:00 | ||
| Calculate Change In Cost Of Debt After Tax Due To Reduced Tax Rates | 00:00:00 | ||
| Cost Of Preferred Stock Percent | 00:00:00 | ||
| Calculate Preferred Stock Current Yield | 00:00:00 | ||
| Financing Debt Vs Preferred Stock | 00:00:00 | ||
| Financing Common Stock Problem 1 | 00:00:00 | ||
| Financing Common Stock Problem 2 | 00:00:00 | ||
About This Course
Who this course is for:
- Business students
- Business professionals
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
This course will discuss 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.
Our Promise to You
By the end of this course, you will have learned debt and equity financing.
10 Day Money Back Guarantee. If you are unsatisfied for any reason, simply contact us and we’ll give you a full refund. No questions asked.
Get started today and learn more about corporate finance.
Course Curriculum
| Section 1 - Introduction | |||
| Cost Of Capital Debt Equity Financing Overview | 00:00:00 | ||
| Weighted Average Cost Of Capital WACC | 00:00:00 | ||
| Cost Of Debt | 00:00:00 | ||
| Cost Of Preferred Stock | 00:00:00 | ||
| Cost Of Common Equity | 00:00:00 | ||
| The Optimal Capital Structure | 00:00:00 | ||
| Section 2 - Practice Problems | |||
| Cost Of Debt After Tax Problem 1 | 00:00:00 | ||
| Cost Of Debt After Tax Problem 2 | 00:00:00 | ||
| Cost Of Debt After Tax Interest Rate Calculation | 00:00:00 | ||
| Cost Of Debt After Tax Interest Rate Calculation | 00:00:00 | ||
| Calculate Change In Cost Of Debt After Tax Due To Reduced Tax Rates | 00:00:00 | ||
| Cost Of Preferred Stock Percent | 00:00:00 | ||
| Financing Common Stock Problem 1 | 00:00:00 | ||
| Financing Common Stock Problem 2 | 00:00:00 | ||
| Section 3 - Excel Problems | |||
| Downloadable Practice Files | 00:00:00 | ||
| Weighted Average Cost Of Capital (WACC) | 00:00:00 | ||
| Cost Of Debt After Tax Problem 1 | 00:00:00 | ||
| Cost Of Debt After Tax Problem 2 | 00:00:00 | ||
| Cost Of Debt After Tax Interest Rate Calculation | 00:00:00 | ||
| Calculate Bond After Tax Cost To Issue | 00:00:00 | ||
| Calculate Change In Cost Of Debt After Tax Due To Reduced Tax Rates | 00:00:00 | ||
| Cost Of Preferred Stock Percent | 00:00:00 | ||
| Calculate Preferred Stock Current Yield | 00:00:00 | ||
| Financing Debt Vs Preferred Stock | 00:00:00 | ||
| Financing Common Stock Problem 1 | 00:00:00 | ||
| Financing Common Stock Problem 2 | 00:00:00 | ||
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