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Stocks, Bonds, and the Cost of Capital

Stocks, Bonds, and the Cost of Capital

This course is part of Principles of Finance Specialization

Instructor: Pearson

Included with Learn more

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1 module

Gain insight into a topic and learn the fundamentals.

Beginner level

Recommended experience

5 hours to complete

Flexible schedule

Learn at your own pace

1 module

Gain insight into a topic and learn the fundamentals.

Beginner level

Recommended experience

5 hours to complete

Flexible schedule

Learn at your own pace

What you'll learn

Value bonds and stocks by analyzing key features, cash flows, risk ratings, and one-year returns.
Evaluate capital structure and required returns by calculating after-tax debt cost, cost of equity, CAPM inputs, and WACC.

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Build your subject-matter expertise

This course is part of the Principles of Finance Specialization

When you enroll in this course, you'll also be enrolled in this Specialization.

Learn new concepts from industry experts
Gain a foundational understanding of a subject or tool
Develop job-relevant skills with hands-on projects
Earn a shareable career certificate

There is 1 module in this course

Learn how to value a company's most important financial assets - stocks and bonds - and calculate its overall cost of capital. This course covers the key factors influencing their prices, the process for valuing different corporate securities, and the essential concepts for determining a firm’s weighted average cost of capital. By the end of this course, you will be able to apply these valuation techniques to assess bonds and stocks and make sound financial judgments.

In this course, we will learn about stocks, bonds, and the cost of capital. We begin by examining the different types of bonds and the factors that determine their value, followed by the process of valuing assets, including bonds, preferred stock, and common stock. You'll learn about bond yields, key valuation relationships, and the expected rate of return for stockholders. Finally, we'll cover essential concepts in determining the cost of capital and calculating the weighted average and divisional costs of capital.

What's included

1 video2 assignments4 app items4 plugins

1 videoTotal 2 minutes

Stocks, Bonds & Capital Valuation2 minutes

2 assignmentsTotal 120 minutes

Graded Quiz60 minutes
Practice Quiz60 minutes

4 app itemsTotal 140 minutes

Reading: Understanding Bonds pp. 226-23420 minutes
Reading: Valuing Bonds pp. 235-25335 minutes
Reading: Understanding Stock pp. 258-28040 minutes
Reading: The Cost of Capital pp. 284-30945 minutes

4 pluginsTotal 20 minutes

Interactive: Corporate Bond Features5 minutes
Interactive: Annual and Semiannual Coupon Payments5 minutes
Interactive: Preferred Stock vs. Common Stock5 minutes
Interactive: Key Terms - Cost of Capital5 minutes

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Add this credential to your LinkedIn profile, resume, or CV. Share it on social media and in your performance review.

Instructor

Pearson

8 Courses49 learners

Offered by

Pearson

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Frequently asked questions

Yes, you can preview the first video and view the syllabus before you enroll. You must purchase the course to access content not included in the preview.

If you decide to enroll in the course before the session start date, you will have access to all of the lecture videos and readings for the course. You’ll be able to submit assignments once the session starts.

Once you enroll and your session begins, you will have access to all videos and other resources, including reading items and the course discussion forum. You’ll be able to view and submit practice assessments, and complete required graded assignments to earn a grade and a Course Certificate.