Cost of capital basics. Defining cost of capital -- Introduction to cost of capital applications : valuation and project selection -- Net cash flow : the preferred measure of return -- Discounting versus capitalizing -- Relationship between risk and the cost of capital -- Cost components of a company's capital structure -- Weighted average cost of capital -- Estimating the cost of equity capital. Build-up models -- Capital asset pricing model -- Proper use of betas -- Size effect -- DCF method of estimating cost of capital -- Using Ibbotson Associates cost of capital data -- Arbitrage pricing model -- Other topics related to cost of capital. Minority versus control implications of cost of capital data -- Handling the discount for lack of marketability -- How cost of capital relates to the excess earnings -- Common errors in estimation and use of cost of capital -- Cost of capital in the courts -- Cost of capital in ad valorem taxation -- Capital budgeting and reasibility studies -- Central role of cost of capital in economic value added