1. Identify the components of a firm's capital structure (pp. 333-334). 2. Differentiate among the factors that affect the cost of debt, the cost of preferred stock, and the cost of common stock (pp. 334-339). 3. Compute the cost of capital (pp. 339-340). 4. Explain why a firm's cost of capital changes with changes in its capital structure (pp. 340-343)