Almost without exception, any company must raise funds from external sources (creditors and shareholders) to invest in their business operations.
When raising funds from these external sources, managers need to consider the “cost of capital.” This refers to how much the investment (the external funds) will actually cost the company. The creditors and shareholders expect a return on their investment – otherwise they would not invest money in the first place. Managers need to know how much return is expected and how much they need to generate from their various businesses.
This course will give you a clear understanding of the “cost of capital” and deepens your knowledge in the underlying concepts of finance.
** We recommend that you take both “Finance Basics: 1” and “Finance Basics: 2” prior to this course.**