Why do firms calculate their weighted average cost of capital?
a.Why do firms calculate their weighted average cost of capital?
b.In computing the cost of capital, which sources should be considered?
c.How does a firm’s tax rate affect its cost of capital? What is the effect of the flotation costs associated with a new security issue on a firm’s weighted average cost of capital?
d.Can Grammy’s Legacy engage in capital budgeting and honor God? Integrate one verse or short-passage of scripture into your answer.