1. What is the cost of capital? 2. What role does the cost of capital play in the firm's long- term investment decisions? 3. What does the firm's capital structure represent? 4. What are the typical sources on long-term capital available to the firm? 5. What are the debt proceeds from the sale of a bond? 6. What methods can be used to find the before-tax cost of debt? 7. What is the weighted average cost of capital (WACC), and how is it calculated? 8. What is the relationship between the firm's target capital structure and the weighted average cost of capital (WACC)?