BAF
capital investment

capital investment - Home Kaplan Financial Ka Search b...

Info icon This preview shows pages 1–2. Sign up to view the full content.

Home Kaplan Financial Ka Contents [ Hide ] 1 Chapter 15: The cost of capital Chapter 15: The cost of capital Chapter learning objectives Upon completion of this chapter you will be able to: explain the relationship between risk and return in financial investments explain the nature and features of different securities in relation to the risk/return trade-off explain the relative risk/return relationship of debt and equity and the effect on their relative costs describe the creditor hierarchy and its connection with the relative costs of sources of finance calculate a share price using the dividend valuation model (DVM) calculate cost of equity using the DVM calculate dividend growth using the dividend growth model (DGM) discuss the weaknesses of the DVM define and distinguish between systematic and unsystematic risk explain the relationship between systematic risk and return and describe the assumptions and components of the capital asset use the CAPM to find a company's cost of equity
Image of page 1

Info icon This preview has intentionally blurred sections. Sign up to view the full version.

Image of page 2
This is the end of the preview. Sign up to access the rest of the document.
  • Summer '12
  • Finance, Economics, Kaplan Financial, Kaplan Exam Tips, relative risk/return relationship

{[ snackBarMessage ]}

What students are saying

  • Left Quote Icon

    As a current student on this bumpy collegiate pathway, I stumbled upon Course Hero, where I can find study resources for nearly all my courses, get online help from tutors 24/7, and even share my old projects, papers, and lecture notes with other students.

    Student Picture

    Kiran Temple University Fox School of Business ‘17, Course Hero Intern

  • Left Quote Icon

    I cannot even describe how much Course Hero helped me this summer. It’s truly become something I can always rely on and help me. In the end, I was not only able to survive summer classes, but I was able to thrive thanks to Course Hero.

    Student Picture

    Dana University of Pennsylvania ‘17, Course Hero Intern

  • Left Quote Icon

    The ability to access any university’s resources through Course Hero proved invaluable in my case. I was behind on Tulane coursework and actually used UCLA’s materials to help me move forward and get everything together on time.

    Student Picture

    Jill Tulane University ‘16, Course Hero Intern