What factors determine the cost of capital

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Reference no: EM131321102

Evaluate and explain the cost of capital in doing so please take on the role of an expert in this area and create a PowerPoint Presentation to be given to a group of executives for them to understand what cost of capital means. Formulate and provide conclusions and recommendations for this group. Include in your presentation the following:

• What is the cost of capital and how does it play a role in various decisions made by financial managers?

• What factors determine the cost of capital?

• How to compute cost of debt, preferred and common stock capital and put them together to develop the overall cost of capital for the firm.

• What assumptions are made in such computations?.

• Role of tax laws in computing cost of capital.

The required length of the PowerPoint Presentation option for this assignment is 12-15 slides (with a separate reference slide). Be sure to include citations for quotations and paraphrases with references in APA format and style.

Reference no: EM131321102

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