Cost of Capital
Calculate the cost of capital, ROE (the expected return on equity) and WACC (the weighted average cost of capital). Use these for better decisions. The program explains cost of capital, ROE and WACC, guides you through calculating these, then shows how to use them as decision and management tools. Special price - in August, Cost of Capital is just $99.
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Cost of Capital explains the cost of capital and its two forms - ROE (the expected return on equity, the cost of equity to the business) and WACC (the Weighted Average Cost of Capital to the business). The program guides you through calculating these cost of capital measures, discusses what they mean, then explains how to use them, and when to use them, for better business and asset management decisions.
The Cost of Capital can be a powerful and useful management tool but, to realise this potential, it has to be calculated correctly and used appropriately. Cost of Capital does this, guiding you through all the stages of learning about, calculating and using the cost of capital tool. The program covers:
- Interpretation - what the cost of capital is, what it means, how it is calculated.
- Information - sets out the information needed to calculate the cost of capital and prints a table so that you can assemble this information for input into the program.
- ROE - the cost of equity to your business - calculates the value of the equity in your business and then the cost of this equity.
- CAPM - the Capital Asset Pricing Model. CAPM estimates the cost of equity, the rate of return that you could expect elsewhere, in businesses of similar structure and risk to the business you are considering.
- WACC - the Weighted Average Cost of Capital (debt and equity) to your business.
- Application - the program shows what ROE and WACC mean, how they can be used for efficient decisions, when to use ROE for decisions, when to use WACC and when not to, how to calculate the Economic Value of an activity or project or business, how to use Economic Value as a decision tool, and the implications of ROE for efficient dividend policy and capital structure.
Cost of Capital makes sophisticated financial tools accessible to the non-expert. Experts also will find that Cost of Capital provides an extensive set of tools in user-friendly form.
Cost of Capital is in one file which runs in Microsoft(R) Excel on any PC.
Purchase Cost of Capital from this site and use it for better business and asset management decisions. Other e-dec Business Value Tools will also interest you - Business Value Analyst, Business Value I and Small Business Valuation provide valuation tool-kits, Small Business Due Diligence and Small Business Purchase deal with the purchase or sale of a business, and Economic Value covers the theory of value and business valuation.
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