Understanding of the cost of capital and risk

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Using the same company from Part I, write a report of 800-1,000 words that demonstrates your understanding of the cost of capital and risk. Specifically, you are to include the following:

  • Give a description of the weighted average cost of capital.
  • Give a description of the capital asset pricing model.
  • Give a description of the security market line.
  • Give a description of the cost of debt.
  • Calculate the weighted average cost of capital. Explain your answer.
  • Calculate the cost of debt. Explain your answer.
  • How would you restructure the firm's debt? Explain your answer.

Reference no: EM13819987

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