1. Why is the WACC used in capital budgeting?
2. Explain the various approaches that are used to estimate the cost of common equity.
3. Explain at least one factor that affects the cost of capital and describe whether or not is is something that a company can control.
4. Provide and summarize a real world example of a publicly traded firm issuing or redeeming capital. What reasons were given for the decision and how does it appear to effect their overall cost of capital?