Apr 21st, 2014
Business & Finance
Price: $25 USD

Question description

Please be reminded that to earn DQ credit, your initial post should meet at least 200 words to qualify for any credit. Each DQ must be at least 200 words thank you answer each DQ total of three.

DQ#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?

DQ#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?  

DQ#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?

Please add any references or just website is fine too.

Tutor Answer

(Top Tutor) Daniel C.
School: Boston College

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Apr 23rd, 2014
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