Cost of Capital and Risk in Capital Budgeting

Summary :

This lesson explains the estimation of cost of capital, including calculations for debt, equity, and preference shares. It discusses WACC, CAPM application, risk analysis (sensitivity, scenario, simulation), risk-adjusted discount rates, and certainty equivalents for practical risk management in project investments.


Course: MBA
Subject: Finance
Cost of Capital and Risk in Capital Budgeting
Cost of Capital and Risk in Capital Budgeting