Cost of Capital and Capital Structure

In this video, I have discussed the formulas in computing the individual cost of capital for each long-term source of funds. Also, I have discussed the computation of the weighted average cost of capital (WACC).
I also include a quick overview on financial leverage as it relates to capital structure, the U shaped marginal cost of capital and the optimal capital structure.
Later in the video, I have also discussed other methods of computing the cost or return of ordinary equity using Dividend Growth Model (Gordon Growth Model) and Capital Asset Pricing Model (CAPM).