Key Concepts and Skills Know how to determine a firm's cost of equity capital Know how to determine a firm's cost of debt Know how to determine a firm's overall cost of capital Understand pitfalls of overall cost of capital and how to manage them2 Key Concepts and Skills n Know how to determine a firm’s cost of equity capital n Know how to determine a firm’s cost of debt n Know how to determine a firm’s overall cost of capital n Understand pitfalls of overall cost of capital and how to manage them