In this informative and engaging presentation, Aswath Damodaran provides a thorough review of the derivation and application of the cost of capital. Damodaran explains why the cost of capital (COC), the Swiss Army knife of finance, is not only misunderstood but also widely misused, what the roles of the COC are in corporate finance and valuation, how to reconcile the different uses of the COC, and what we would like to capture with each COC input and the difficulties of estimation given noisy data.