Discussion: Cost of Capital Topics: a) Discuss what role the

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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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