Skip to main content

ColumbiaX: Risk & Return

4.6 stars
18 ratings

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
Progress at your own speed
Optional upgrade available

There is one session available:

31,043 already enrolled! After a course session ends, it will be archivedOpens in a new tab.
Starts Feb 22
Ends Dec 31

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:Financial Asset, Cash Flows, Capital Structures, Cost Of Capital, Equity and Debt, Equities, Expected Return, Weighted Average Cost Of Capital (WACC)

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)

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

This course is part ofCorporate Finance Professional Certificate Program

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

Interested in this course for your business or team?

Train your employees in the most in-demand topics, with edX For Business.