PPT-Cost of Capital

RWJChapter 14 Once again Whats the Big Idea Earlier chapters on capital budgeting focused on the appropriate size and timing of cash flows This chapter discusses the appropriate discount rate when cash flows are risky. Presented by:. John S. Reifsnyder, CDFM. Graduate School. Instructor. johnreifsnyder@cox.net. 1. Workshop Focus. History of Working Capital Funds (WCF). Organizations Utilizing WCFs. Myths About WCFs. http://www.youtube.com/watch?feature=player_detailpage&v=JKJglPkAJ5o. . . Financing. Why do companies need money?. Describe the differences between the capital structure and the financial structure.. Adnan Bashir . Bin . Divakaransantha. Prakash . Poudel. . Semir Kelifa . Department of Chemical and Bio molecular . Engineering . University . of Maryland . CHBE446 . February . 12, . 2015. Outline . Easy Pay . to support Cisco DNA (Core Refresh). Transform Your Business with Networking Reimagined. Transform Processes & Business Models. Innovations. Faster Time to Market. Empower Workforce . The cost of capital depends on the nature of the capital used. . It . is for this reason that we must start by analyzing the various sources of funds that are used and the way in which these funds are raised. Thus, we study the environment in which the firm raises these funds.. What is VC?. Money provided by investors to startup firms and small businesses with perceived long-term growth potential . No access to Capital Markets. High risk, above average returns. Who?. Wealthy investors . Financial Decision Making. Study Unit . 5. Financial . Instruments and Cost of . Capital. Ronald Schmidt, CMA, CFM. Adrien . Dubourg. , CMA. Cost of Capital - Defined. Corporations derive capital essentially from two sources: lenders and shareholders. Cost of capital. Require return versus cost of capital. Any returns for investors are costs for the company. NPV. What is the required rate of return? What does it mean?. What is the difference between: required rate of return / appropriate discount rate and cost of capital?. . Explain how the three major problem areas in . finance—valuation. , cost of capital, and determining cash . flows—are . related.. 20. .2. . Calculate the weighted average cost of capital . (. 1. Global Cost and Availability of Capital. How a firm headquartered in a country with an illiquid and segmented capital market achieves a lower global cost and greater availability of capital. Analyze the linkage between cost and availability of capital. Sections. Cost of capital. Segmentation vs. integration. Differential costs of capital. Cross-border share listing . Foreign equity ownership restrictions. Subsidiaries’ capital structure. Cost of capital. Any Questions from Day 1. ?. 122. Accounting > General Ledger Accounts > Closing > Financial Statements. . How to read and interpret financial statements – Balance Sheet, Income Statement, and Statement of Cash Flows. Nature/ Significance of Capital Budgeting Decisions. Purchase of a long-term capital assets with the objective to generate return. Involvement of huge funds. Irreversible. Long-term profitability/risk. Capital v Resource and the Creation of Fixed Assets. Capital Management Team. STFC Finance. September 2018. Capital Management . - Team. Team Lead. Chris Biswell. Victoria Fairburn. Joe Moxon. Jeffrey Brown.