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CB1: Business Finance: Exam CB1 Prep
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Module 11
Cost of Capital and Capital Structure
1
Estimating Cost of Equity Using CAPM
Estimate the cost of equity using the Capital Asset Pricing Model (CAPM).
2
Estimating Cost of Equity with the Dividend Growth Model
Estimate the cost of equity using the Dividend Growth Model.
3
Cost of Debt Calculation
Calculate the before-tax and after-tax cost of debt.
4
Calculating WACC
Calculate the weighted average cost of capital (WACC).
5
MM & WACC: The Impact of Leverage
Apply the Modigliani-Miller propositions to calculate the effect of leverage on firm value and WACC, with and without tax.
6
Capital Structure Theories: Trade-off and Pecking Order
Apply the trade-off and pecking order theories to analyse a company's capital structure decisions.
7
Dividend Policy: Theory and Practice
Demonstrate dividend irrelevance numerically and analyse factors that influence dividend policy in practice.
8
Share Buybacks vs. Dividends: EPS & Share Price Impact
Analyse the financial impact of share buybacks as an alternative to dividends on EPS and share price.
Previous module
Financial Derivatives for Hedging
Next module
Capital Budgeting and Corporate Valuation