Agenda
In this session, you'll build a complete understanding of cost of capital — a critical concept for valuation and investment decisions across CIMA and ACCA qualifications.
This lesson is part of a paid course
Buy the course to unlock every video lesson and the AI Tutor, plus mock exams with feedback on CIMA courses.
Already bought? Sign in
Ask the AI tutor anything about this lesson
It knows every lesson in the course — explanations, clarifications, practice questions.
In this lesson
- 0:00 Estimating the cost of capital
- 0:05 Understanding risk and return holistically
- 0:10 Calculating the cost of equity
- 0:16 Calculating the cost of debt
- 0:21 Weighted average cost of capital explained
About this lesson
You'll start with the relationship between risk and return, then work through calculating the cost of equity and cost of debt before bringing them together to find your weighted average cost of capital (WACC). By the end, you'll be able to apply these techniques confidently in exam scenarios and real business decisions. This foundation is essential for Advanced Financial Management, Financial Strategy, and Strategic Business Leader case studies, where capital structure and investment appraisal questions regularly appear.
0Transcript
Every lesson comes with a full searchable transcript - included with the course.
Get the Financial Management course
All 112 video lessons, an AI Tutor in every lesson and lifetime access.
Already bought? Sign in