The Management of Capital

Learn how and why to calculate the costs of capital, including the weighted average of each capital component.

Includes: Certificate of Completion

Language: English

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About this Course

This course provides an overview of concepts related to the management of capital. The cost associated with capital is rarely reflected on the Income Statement. Accordingly, many financial managers mistakenly think there is no cost of capital. Therefore, one of the first steps in managing capital is to calculate the cost of capital. The course illustrates how cost of capital is calculated as the weighted average of each capital component - Long Term debt, common stock, preferred stock, and retained earnings.