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Risk & Return

Learn how to measure the risk and return of equity and debt; and compute the weighted average of cost of capital.

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29,610 already enrolled!
Starts Jun 2
Ends Jun 30
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Risk & Return

Learn how to measure the risk and return of equity and debt; and compute the weighted average of cost of capital.

4 weeks
3–4 hours per week
Self-paced
Progress at your own speed
Free
Optional upgrade available

There is one session available:

29,610 already enrolled! After a course session ends, it will be archivedOpens in a new tab.
Starts Jun 2
Ends Jun 30
Enroll
Risk & Return

About this course

Skip About this course

In this course, you will learn to estimate the expected return of equity and debt. You will also learn to estimate the weighted average cost of capital (WACC), the opportunity cost of capital you should use when discounting the free cash flows to value a firm.

In the process, you will learn to estimate the risk of financial assets and how use this measure of risk to calculate expected returns. You will also learn how the capital structure of a firm affects the riskiness of its equity and debt. Throughout the course, you will learn how to construct Excel models to value firms using hands on activities.

At a glance

  • Institution: ColumbiaX
  • Subject: Business & Management
  • Level: Introductory
  • Prerequisites:

    Students must be familiar with basic concepts of Accounting; basic skills in Microsoft Excel (or equivalent); Students should have completed Introduction to Corporate Finance and The Free Cash Flow Method for Firm Valuation.

  • Language: English
  • Video Transcript: English
  • Associated programs:
  • Associated skills: Cost Of Capital, Capital Structures, Expected Return, Weighted Average Cost Of Capital (WACC), Equities, Cash Flows, Financial Asset, Equity and Debt

What you'll learn

Skip What you'll learn
  • How to measure risk
  • Estimate the expected return of an asset based on its risk
  • Adjust the risk of the equity and debt of a firm when the firm changes its capital structure
  • Calculate the weighted average cost of capital (essential input to value of firm)

Syllabus

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Week 1: Risk, return, and the Capital Asset Pricing Model (CAPM)

Week 2: The Weighted Average Cost of Capital (WACC) and the effect of capital structure on WACC

Week 3: Case study: Estimating the WACC

Week 4: Valuation capstone case

About the instructors

This course is part of Corporate Finance Professional Certificate Program

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Expert instruction
3 skill-building courses
Self-paced
Progress at your own speed
3 months
3 - 4 hours per week

Ways to take this course

Choose your path when you enroll.
Verified Track
Audit Track

Price

$225 USD

Free

Access to course materials

Unlimited

Limited

Expires on Jun 30

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edX support

Shareable certificate upon completion

Graded assignments and exams

Read our FAQsin a new tab about frequently asked questions on these tracks.

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