What is the value in understanding the wacc

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Reference no: EM131622218

Discussions

1. What are the components of Capital? List each and explain its legal implications.

2. What is the 'Weighted Average Cost of Capital'? WACC.

3. What is the value in understanding the WACC? How can you influence/impact it as a manager?

4. How are Bonds and Stocks different? From a cost to the company, which is more expensive to issue and why? Give examples, expand on your response....avoid brevity....

5. From an ongoing perspective (once issued), which is more (possibly) dangerous to a company? A Bond or Stock? Why? Give specific examples both from a legal and cost of money and liquidity perspective to substantiate your opinion....

Please answer the discussion board question WITHOUT quoting directly from the textbook. I am interested in seeing your own thoughts and substantiations for your comments.

Note: Avoid brevity! The above are ample questions which require you to detail and substantiate your response. Note my instructions in Discussion Question #1 re: cut & paste. Also note that the assignment will NOT BE AVAILABLE after the due date/time.

Reference no: EM131622218

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