What’s on the Cost of Capital poster
The rule, 3 worked examples, and the mistake everyone makes.
- The weighted average cost of capital blends the cost of equity and the after-tax cost…
- WACC = (E/V × Re) + (D/V × Rd × (1 − t))
- Cost of equity = Usually via CAPM
- Cost of debt = Interest rate, after tax
- Weights = Market values, not book
- Common mistake: Assuming debt is cheap so more is better → Gearing raises the cost of…
Equity is more expensive than debt, because equity holders are paid last and bear the residual risk.
Questions about the Cost of Capital poster
- What’s on the Cost of Capital poster?
- The rule, 3 worked examples, and the mistake everyone makes. The weighted average cost of capital blends the cost of equity and the after-tax cost…; WACC = (E/V × Re) + (D/V × Rd × (1 − t)); Cost of equity = Usually via CAPM; Cost of debt = Interest rate, after tax; Weights = Market values, not book; Common mistake: Assuming debt is cheap so more is better → Gearing raises the cost of…. Equity is more expensive than debt, because equity holders are paid last and bear the residual risk.
- Who is the Cost of Capital poster for?
- Cost of Capital belongs to the Business & Management section rather than to a school year, because business is not something one grade owns. Anyone learning business finance can pin it up — a beginner, a student mid-course, or someone revising years later.
- When should you use the Cost of Capital poster?
- WACC is the hurdle rate. A project returning less than it destroys value. A wall chart earns its place by being glanceable from where the work is happening, so Cost of Capital belongs on the wall where that business work actually happens, within glancing distance, rather than filed away.
- What other posters go with Cost of Capital?
- Financial Ratios, The Balance Sheet and Break-Even sit alongside Cost of Capital in the Business & Management section. Printed together they make a wall rather than a single sheet, which is how a reference set actually gets used.Financial RatiosThe Balance SheetBreak-Even
- Is the Cost of Capital poster free to download and print?
- Yes. Cost of Capital downloads as a free PDF with no account, no email and no watermark, like everything else in the Business & Management section. Print as many copies as you like for a home, a classroom, a library or a tutoring group; reselling the file is the only thing the licence rules out.Read the licence
- What size does the Cost of Capital poster print at?
- Cost of Capital is a vector PDF laid out for US Letter, and prints on A4 with Fit to page — the same file, no separate download. Because every mark on it is drawn rather than photographed, it stays sharp enlarged to A3, A2 or A1 at a copy shop. Colour carries emphasis only, so a greyscale print of Cost of Capital loses nothing.Printing guide
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