Question #1:
What are main elements in calculating the cost of capital? How does an increase in debt affect it? How do you identify an organization’s optimal cost of capital?
QUESTION # 2:
What is meant by weighted average cost of capital (WACC)? What are some components of WACC? Why is WACC a more appropriate discount rate when doing capital budgeting? What is the effect on WACC when an organization raises long-term capital
QUESTION #3:
What is an initial public offering (IPO)? How does an IPO allow an organization to grow financially? When is a merger or an acquisition, instead of an IPO, more appropriate?
Answer will be sent by email as attachment.
