Module 2.3: Cost of Different Sources of Funds

“There are no free lunches in finance”
Source of finance has its costs which should be met by the agents

Sub-Module Learning Objectives
Module 2.3 aims at introducing the learner to the cost of capital phenomenon and its importance to the efficient management of a firm’s finances in its financing and investment decisions

Sub-Module Learning Outcomes
At the end of Module 2.3, the learner will have an understanding of the role that the cost of capital plays on the various sources of financing ICTs.
Sessions covered in the chapter are:

Session 1: Introduction to Cost of Capital
Session 2: Cost of Equity and Debt
Session 3: Value of the Firm and the Cost of Capital