This screencast demonstrates the key computations and concepts related to solving a Weighted Average Cost of Capital problem from Part 2, Section B of the Certified Management Accountant examination. The three keys to solving this problem are to understand how much equity is required for the company's optimal capital structure, how much of the equity can be funded through Retained Earnings, and how issue and flotation costs can impact the cost of externally generated capital.
For more information on the Certified Management Accountant Examination, visit whiteboardcma.com.
Loading more stuff…
Hmm…it looks like things are taking a while to load. Try again?