Lecture Fundamentals of corporate finance - Chapter 13: Return, risk, and the security market line
Lecture Fundamentals of corporate finance - Chapter 13: Return, risk, and the security market line
After studying this chapter in the lecture, you should be able to: Explain what the cost of capital represents and why it is so important, estimate the cost of equity using the dividend growth model approach and the security market line approach, estimate the cost of debt and the cost of preferred stock, understand when it is appropriate and to use the WACC as a measure of the firm's required rate of return,...