SAQA All qualifications and part qualifications registered on the National Qualifications Framework are public property. Thus the only payment that can be made for them is for service and reproduction. It is illegal to sell this material for profit. If the material is reproduced or quoted, the South African Qualifications Authority (SAQA) should be acknowledged as the source.
SOUTH AFRICAN QUALIFICATIONS AUTHORITY 
REGISTERED UNIT STANDARD: 

Determine the cost of capital 
SAQA US ID UNIT STANDARD TITLE
13105  Determine the cost of capital 
ORIGINATOR
SGB HET Accountancy and Financial Management 
PRIMARY OR DELEGATED QUALITY ASSURANCE FUNCTIONARY
FASSET - Financial and Accounting Services SETA 
FIELD SUBFIELD
Field 03 - Business, Commerce and Management Studies Finance, Economics and Accounting 
ABET BAND UNIT STANDARD TYPE PRE-2009 NQF LEVEL NQF LEVEL CREDITS
Undefined  Regular  Level 6  Level TBA: Pre-2009 was L6  10 
REGISTRATION STATUS REGISTRATION START DATE REGISTRATION END DATE SAQA DECISION NUMBER
Reregistered  2018-07-01  2023-06-30  SAQA 06120/18 
LAST DATE FOR ENROLMENT LAST DATE FOR ACHIEVEMENT
2024-06-30   2027-06-30  

In all of the tables in this document, both the pre-2009 NQF Level and the NQF Level is shown. In the text (purpose statements, qualification rules, etc), any references to NQF Levels are to the pre-2009 levels unless specifically stated otherwise.  

This unit standard does not replace any other unit standard and is not replaced by any other unit standard. 

PURPOSE OF THE UNIT STANDARD 
People credited with this unit standard are able to determine the cost of capital as it relates to the cost of debt, preference shares, equity and the weighted average cost of capital. 

LEARNING ASSUMED TO BE IN PLACE AND RECOGNITION OF PRIOR LEARNING 
Unit standard, Contribute to the management of costs and enhancement of value, NQF level 5. 

UNIT STANDARD RANGE 
Cost of debt, Preference shares, Equity and Weighted average of goods 

Specific Outcomes and Assessment Criteria: 

SPECIFIC OUTCOME 1 
Determine the cost of debt, preference shares and equity. 

ASSESSMENT CRITERIA
 

ASSESSMENT CRITERION 1 
1. The cost of all forms of debt instruments is determined using specified accounting methods. 

ASSESSMENT CRITERION 2 
2. The cost of preference shares is determined using specified accounting methods. 

ASSESSMENT CRITERION 3 
3. The factors affecting the cost of equity are discussed in line with the principles of cost of capital. 

SPECIFIC OUTCOME 2 
Determine the weighted average cost of capital. 

ASSESSMENT CRITERIA
 

ASSESSMENT CRITERION 1 
1. The weighted average cost of capital, given the cost of equity, is calculated using generally accepted accounting methods. 

ASSESSMENT CRITERION 2 
2. The capital asset pricing model is utilised in the determination of weighted average and project specific cost of capital. 

ASSESSMENT CRITERION 3 
3. Dividends and capital growth are taken into account in the determination of the cost of capital. 


UNIT STANDARD ACCREDITATION AND MODERATION OPTIONS 
Accreditation for this unit standard shall be obtained from the relevant Education and Training Quality Assurance Body, through summative assessment by registered assessor

Moderation activity comments by SGB's, organisations and individuals may be forwarded to NSB03 

UNIT STANDARD ESSENTIAL EMBEDDED KNOWLEDGE 
A demonstrated understanding of:
  • Cost of capital, cost of debt, preference shares, equity and the weighted average cost of capital. 


  • Critical Cross-field Outcomes (CCFO): 

    UNIT STANDARD CCFO IDENTIFYING 
    Solve problems 

    UNIT STANDARD CCFO WORKING 
    Work effectively with others a member of a team/group 

    UNIT STANDARD CCFO ORGANISING 
    Organise and manage oneself and one's activities responsibly and effectively 

    UNIT STANDARD CCFO COLLECTING 
    Collect, organise and critically evaluate information 

    UNIT STANDARD CCFO COMMUNICATING 
    Communicate effectively using visual, mathematics and language skills in the modes of oral and written presentations 

    UNIT STANDARD CCFO SCIENCE 
    Use science and technology effectively and critically 

    UNIT STANDARD CCFO DEMONSTRATING 
    Demonstrate an understanding of the world as a set of related systems 

    REREGISTRATION HISTORY 
    As per the SAQA Board decision/s at that time, this unit standard was Reregistered in 2012; 2015. 

    QUALIFICATIONS UTILISING THIS UNIT STANDARD: 
      ID QUALIFICATION TITLE PRE-2009 NQF LEVEL NQF LEVEL STATUS END DATE PRIMARY OR DELEGATED QA FUNCTIONARY
    Fundamental  24453   National Certificate: Real Estate  Level 6  Level TBA: Pre-2009 was L6  Reregistered  2023-06-30  SERVICES 


    PROVIDERS CURRENTLY ACCREDITED TO OFFER THIS UNIT STANDARD: 
    This information shows the current accreditations (i.e. those not past their accreditation end dates), and is the most complete record available to SAQA as of today. Some Primary or Delegated Quality Assurance Functionaries have a lag in their recording systems for provider accreditation, in turn leading to a lag in notifying SAQA of all the providers that they have accredited to offer qualifications and unit standards, as well as any extensions to accreditation end dates. The relevant Primary or Delegated Quality Assurance Functionary should be notified if a record appears to be missing from here.
     
    NONE 



    All qualifications and part qualifications registered on the National Qualifications Framework are public property. Thus the only payment that can be made for them is for service and reproduction. It is illegal to sell this material for profit. If the material is reproduced or quoted, the South African Qualifications Authority (SAQA) should be acknowledged as the source.