WACC I

Cost of Capital Basic concepts

Table of Contents:

00:00 - Cost of Capital - I,A primer of theory
00:10 -
00:56 - What types of long-term capital do firms use?
01:31 - Historical (Embedded) Costs vs. New (Marginal) Costs
01:56 - Estimating the Cost of Debt
03:08 - Cost of Preferred Stock:WACC = wdrd(1 – T) + wpsrps + wsrs
03:46 - Preferred Stock
04:03 - Costs of Issuing New Common Stock or Preferred Stock
04:16 - Comments about flotation costs:
04:49 - Is preferred stock more or less risky to investors than debt?
05:15 - Which one is higher? rps or rd?
05:52 - Why is there a cost for reinvesting our own money (earnings)?
06:27 - WACC = wdrd(1 – T) + wpsrps + wsrs
07:18 - WACC = wdrd(1 – T) + wpsrps + wsrs
07:51 - Estimating Weights for the Capital Structure
08:26 - Next Video: More on WACC