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Identify and recommend at least one credible web site that

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Reference no: EM13481033

Identify and recommend at least 1 credible Web site that discusses the process of calculating the cost of capital and it components, and address at least 3 of the following topics:

  • What is the cost of capital, and what role does it play in long-term investment decisions?
  • What are the 3 basic components of the formula, and how is each estimated?
  • Why is the after-tax cost of debt used, and how does this adjustment affect the overall cost of capital?
  • Which component is generally the most expensive, and why?
  • How is the cost of capital calculated, and how are the weights of each component determined?
  • Why is the cost of retained earnings less costly than issuing new equity?
  • What is the difference between the weighted average cost of capital (WACC) and the weighted marginal cost of capital (WMCC), and when should the WMCC be used?

Reference no: EM13481033

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