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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
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  • Summer '12
  • Finance, Economics, Kaplan Financial, Kaplan Exam Tips, relative risk/return relationship

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