Discuss what role the cost of capital plays in capital budget
Discussion: Cost of Capital
Topics:
a) Discuss what role the cost of capital plays in capital budgeting (i.e. the allocation of capital).
b) Discuss a few of the advantages and disadvantages of obtaining capital through 1) Debt and 2) Equity.
c) Describe how the Weighted Average Cost of Capital (WACC) is determined for a business.
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