(Last Updated: 7/2020)

https://www.udemy.com/course/the-weighted-average-cost-of-capital-course-2020/

Understanding the WACC and Capital structure of a company.

What you'll learn

You will have a good understanding of the weighted average cost of capital concept (WACC), how it is calculated, how it fits into the capital structure of a company, you will also learn how to calculate the cost of equity for public and private companies. the cost of debts, how the beta of a company is derived and calculated, and also how to calculate the cost of equity and the WACC of a company in a developing economy.

Requirements

must have the basic finance knowledge

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Description

As a Financier, or an individual in the business milieu, the WACC concept is a must-know financial concept if you have to make a top notch financial analysis, and at the same time making impactful decisions at your job site and(or) your business.

In this course, we are going to drill you through a detailed but simple understanding of the WACC concept, narrowing in this concept into balance sheet to show you how this concept fits into the capital structure of a company.

We shall go through the different components of the WACC formula, analyzing the distinct capital proportions that make up a WACC formula.

We shall also analyze the Cost of debt which is a WACC component, and how this cost of debt is calculated for both a private and a public company.

Next will be the detail analysis of the cost of equity and its distinct components, here, we shall learn how the cost of equity is calculated for both public and private companies using the CAPM(Capital Asset Pricing Model), with special emphasis being placed on the Beta calculation and how it should be interpreted.

Each section analyzed above, comes with a well explained practical example.

Then finally, we shall move to the calculation of a company’s WACC, using a real-world business case study, and also detailing out the steps required to calculate the WACC of a company in a developing Economy.

Who this course is for:

Finance Analysts, Finance Specialists and Finance students