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The cost of capital
Overview
Risk vs Calculating
return The WACC returns
WACC
Cost of
preference COSTS OF SOURCE calculation
shares – OF FINANCE
DVM
Impact of
risk
Cost of Cost of
equity – debt
DVM CAPM
Impact of tax
Constant relief
dividends
Irredeemable Redeemable
Constant debt debt
dividend
growth
Redeemable Convertible
Ex div share at current
debt
price market price
Estimating Non-tradable
growth debt
293
