Content
More complex cost of debt calculations
Cost of convertibles
The cost of foreign currency denominated loan
The limitations to the use of the WACC in project appraisal
Project specific WACCs
A WACC for overseas investment
Knowledge checklist
Able to calculate the cost of loan stock with variable redemption dates and those with interest which is not payable annually;
Able to calculate the sterling equivalent cost of a foreign currency denominated loan;
Able to understand the nature of convertible loan stocks and the problems of estimating the cost of a convertible;
Able to understand the theoretical limitations to the use of the WACC in project evaluation and to calculate a project specific WACC;
Able to calculate a WACC for evaluating an overseas investment and to understand the significance of international diversification.
More complex cost of debt calculations
Cost of convertibles
The cost of foreign currency denominated loan
The limitations to the use of the WACC in project appraisal
Project specific WACCs
A WACC for overseas investment
Knowledge checklist
Able to calculate the cost of loan stock with variable redemption dates and those with interest which is not payable annually;
Able to calculate the sterling equivalent cost of a foreign currency denominated loan;
Able to understand the nature of convertible loan stocks and the problems of estimating the cost of a convertible;
Able to understand the theoretical limitations to the use of the WACC in project evaluation and to calculate a project specific WACC;
Able to calculate a WACC for evaluating an overseas investment and to understand the significance of international diversification.