Nov 6, 2017

Cost of Capital with Preferred Stock


This Excel file allows you to estimate the cost of capital of a firm that has Preferred Stock outstanding. It helps you unlever and relever the relevant betas to determine the cost of capital (WACC) under the target capital structure.

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  • Mit diesem Excel-File können sie wichtige Finanzkennzahlen rasch berechnen und leicht verständlich darstellen. Einen ausführlichen Guide zum Thema Finanzanalyse finden Sie in Englischer Sprache im Modul " Financial Analysis for Managers "
  • This Excel file helps you compile common-size balance sheets and income statements. It also computes many different financial ratios (liquidity, activity, financing policy, profitability, value creation) for your firm, shows your cash conversion cycle, tracks the roots of your return on equity (ROE), and provides a comprehensive graphical analysis of all these dimensions of firm performance. For a comprehensive guide to financial analysis, click here .
  • This Excel file helps you estimate the cost of capital of a firm under alternative financial policies. You can use it to estimate the cost of capital from comparable firms or to estimate the impact of a change in leverage on a firm's cost of capital. It also helps you avoid common mistakes that many academics and practitioners make when using overly simplified equations to unlever and relever betas. To learn more about the estimation of the cost of capital, click here .