How will you calculate the wacc for this firm and why

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Q1. You are calculating the WACC for Boca Corp and find that the cost of debt is 7% and the cost of preferred stock is 7.5%. You've also calculated the cost of common stock via the CAPM (6.8%), the DDM (7.8%) and the Earnings Multiplier approach (8.4%). How will you calculate the WACC for this firm and why?

Q2. If you are in charge of the working capital management of a small, local business, name 4 ratios would you be most concerned about and why?

Reference no: EM132181781

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