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📚 Learn › Paper 6 — Financial Management & Strategic Management › Chapter

Cost of Capital

Computation of cost of equity, debt, preference and retained earnings; weighted-average and marginal cost of capital. Highly formula-driven — expect 8–10 marks.

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5 microlessons in this chapter
Read each in 5 minutes. Each has worked examples + the bare Act text for reference.
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All lessons

1
Weighted Average Cost of Capital (WACC)
WACC explained simply for CA Inter May 2026 — formula, weights, post-tax costs, CAPM, worked examples and common exam mistakes covered.
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2
Cost of Equity (Dividend, CAPM, Earnings Approach)
Cost of Equity for CA Inter FM: master DGM, CAPM & E/P ratio with worked examples, exam tips & common mistakes for May 2026.
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3
Cost of Debt (Irredeemable & Redeemable)
Cost of Debt (Kd) for CA Inter FM: after-tax formulas for redeemable & irredeemable debentures with solved examples for May 2026 exam.
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4
Cost of Preference Capital
Cost of Preference Capital (Kp) explained for CA Inter FM: irredeemable vs redeemable formulas, no tax adjustment, worked examples, and WACC
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5
Marginal Cost of Capital
Marginal Cost of Capital for CA Inter FM: break points, MCC schedule, and optimal capital budget explained with solved examples for May 2026
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