Cost of Capital: What is It and Why Should I Use It?

Don Minges, MBA, The Numbers Guy CFO, LLC

Every business needs capital, and capital has a cost. Debt and equity providers demand a return and the combination is the organization’s cost of capital. This session discusses how to calculate the cost of capital, how to use it to make superior business decisions every day and some common ways organizations misuse this number.

Who should understand your organization’s Cost of Capital? You should! Even if you are not yet the CFO, you need to thoroughly understand the Cost of Capital and its use. Knowing the Cost of Capital allows managers to literally “Get the biggest bang for the buck.” If you want to enhance your corporate finance skills, this session is for you.