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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.