I appreciate the explanation of a fundamental way to value a company. You do explain it very clearly, which is great for folks unfamiliar with these methods. One thing I noticed was that the cost of debt for Deadly Dragon Potatoes, Inc. was stated as two different values, 10% and 12%, which might introduce some confusion to folks new to these calculations. Since you did all the calculations using 12% you can easiest just change the one mention of 10% to 12% and rectify the typo. Also, just like debt requires regular payments, stock companies that pay dividends to stockholders do disburse dividend payments to investors, incurring a real cost of equity, not only theoretical.

Thanks!