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COST OF CAPITAL & CAPITAL INVESTMENT APPRAISAL

            Outcomes




            • Understand the concept of risk vs. return, including the

                underlying theory.



            • Integrate multiple sources of knowledge to determine

                the fair value of different types/forms of preference

                shares and debt, incorporating complications in

                discounted cash flow and relevant income tax

                treatments (e.g. sections 8E, 8F and 24J).



            • Analyse an entity’s cost of capital and capital structure.


            • Calculate the weighted average cost of capital and its

                various components.



            • Understand the circumstances in which a project

                specific cost of capital will be utilised, including the

                calculation thereof.



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