Slide MGT204 Slide12

12-1

Chapter Twelve

Risk, Cost ofCorporate
Capital, Finance
Ross Westerfield Jaffe
and Capital Budgeting
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12

Sixth Edition

Prepared by
Gady Jacoby
University of Manitoba
and
Sebouh Aintablian

American University of
Beirut
McGraw-Hill Ryerson

© 2003 McGraw–Hill Ryerson Limited

12-2

Chapter Outline
12.1 The Cost of Equity Capital
12.2 Estimation of Beta
12.3 Determinants of Beta
12.4 Extensions of the Basic Model
12.5 Estimating Bombardier’s Cost of Capital
12.6 Reducing the Cost of Capital
12.7 Summary and Conclusions

McGraw-Hill Ryerson

© 2003 McGraw–Hill Ryerson Limited