TAILIEUCHUNG - Lecture Investment analysis & portfolio management - Chapter 13

After studying this chapter you will be able to understand: Objectives of secuirty valuation and cost of capital, weighted average cost of capital, estimating inputs : discount rates, secuirty valuation and cost of capital, dividend valuation model, cost of equity, cost of preference shares. | Investment Analysis Lecture: 13 Course Code: MBF702 Outline RECAP OBJECTIVES OF SECUIRTY VALUATION AND COST OF CAPITAL WEIGHTED AVERAGE COST OF CAPITAL ESTIMATING INPUTS : DISCOUNT RATES SECUIRTY VALUATION AND COST OF CAPITAL DIVIDEND VALUATION MODEL COST OF EQUITY COST OF PREFERENCE SHARES Objectives To develop a model for the valuation of shares and bonds. To use this model to estimate the cost of equity and the cost of debt. To consider further practical influences on the valuation of securities. Weighted average cost of capital (WACC) The cost of capital for investors is the return that investors require from their investment. Companies must be able to make a sufficient return from their own capital investments to pay the returns required by their shareholders and holders of debt capital. The cost of capital for investors therefore establishes a cost of capital for companies. For each company there is a cost of equity. This is the return required by its shareholders, in the form

• Tài chính doanh nghiệp
• Investment analysis
• Portfolio management
• Investment management
• Investment theory
• Investment environment
• Investment analysis
• Investment companies
• Time value of money
• Characteristics of investment
• Investment portfolio management
• Investment analysis & portfolio management
• Investment background
• Developments in investment theory
• Management of common stocks