Chapter 13, the cost of capital. After studying this chapter you will be able to: Explain what the cost of capital represents and why it is so important, estimate the cost of equity using the dividend growth model approach and the security market line approach, estimate the cost of debt and the cost of preferred stock, understand when it is appropriate and to use the WACC as a measure of the firms required rate of return,. | Lecture Fundamentals of corporate finance (3/e): Chapter 13 - Robert Parrino, David S. Kidwell, Thomas Bates
