COST OF CAPITAL

This book is brought up in accordance with the subject of Cost of capital. In this book, the subject matter is expressed in clear way so that every reader can understand the subject easily. In the book, I clearly mentioned the Definition, Importance, Classification, Components, Computation of cost of capital and examples given for each type.

The main features of the book are simple understanding and key concepts.

This book is useful to everyone in Finance and Accounts field like students, Accounts executives, Analysts etc. and I believe that this book will help the users to success in interviews also.

It is hoped that this will facilitate a better understanding of the subject matter.

I welcome any valuable suggestions regarding this book in a better and improved way. Suggestions will be incorporated in the subsequent editions.

All the best …

CONTENTS :-
I. DEFINITION OF COST OF CAPITAL
II. IMPORTANCE OF COST OF CAPITAL
III. COMPONENTS OF COST OF CAPITAL
IV. CLASSIFICATION OF COST OF CAPITAL
V. COMPUTATION OF COST OF CAPITAL
     A. Computation of specific costs
         1. Cost of Debt
             (a) Cost of irredeemable debt
              (b) Cost of redeemable debt
               (c) Cost of existing debt
           2. Cost of preference shares
                (a) Cost of irredeemable preference share capital
                 (b) Cost of redeemable preference share capital
          3. Cost of Equity shares
                 (a) Dividend model (No growth)
                (b) Dividend plus growth (Dividend discount) model
                (c) Earnings model
                 (d) Capital Asset Pricing model (CAPM)
          4. Cost of Retained Earnings
B. Cost of Composite capital or Weighted Average Cost of Capital