Chapter 11 - Risk Analysis and the Optimal Capital Budget

1. Introduction to Project Risk
1. Stand Alone Risk - Slide 5
2. Corporate Risk - Slide 7
3. Market Risk - Slide 9
• Finding hurdle rates based on market risk.
• Slides (35-42)
• Equity Betas, Asset Betas, and Capital Structure
2. Incorporating Risk and Capital Structure into Capital Budgeting Decisions
3. Optimal Capital Budget

Spreadsheet Example

Chapter 11 - Homework