We provide a method for calculating the cost of equity and the cost of capital in the presence of convertible securities and employee stock options. We demonstrate how this approach can be applied if a company already has issued convertible claims or if it is considering doing so for the first...

1: An Overview of Financial Management and the Financial Environment. Web Extensions. 1A: An Overview of Derivatives. 1B: A Closer Look at the Stock Markets. 2: Financial Statements, Cash Flow, and Taxes. Web Extensions. 2A: The Federal Income Tax System for Individuals. 3: Analysis of Financial...

An Overview of Financial Management and the Financial Environment -- Time Value of Money -- Financial Statements, Cash Flow, and Taxes -- Risk and Return: The Basics -- Risk and Return: Portfolio Theory and Asset Pricing Models -- Bonds and Their Valuation -- Stocks and Their Valuation --...