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Lesson 69 E2aE2bE2cE3a

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.

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In this lesson

  1. 0:00 Estimating the cost of capital
  2. 0:05 Understanding risk and return holistically
  3. 0:10 Calculating the cost of equity
  4. 0:16 Calculating the cost of debt
  5. 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.

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