. Comment on the desirability of building a consensus among the fmancial staff concerning the cost of capital.

2. How does the cost of capital relate to capital budgeting? (Please explain in detail.)

3. What is the probable meaning ofTiffm's motto?

4. What is the projected dividend growth rate?

5. Calculate the weighted average book cost of capital for COBA. Discuss each of the component costs.

6. What is the relationship, if any, of the cuITent liabilities to the company's cost of capital?

7. Comment on the optimal capital structure as it relates to the cost of capital.

8. What are some advantages of establishing a relationsl:iip with an investment banker?

9. What is the meaning of the oppo1tunity cost of capital for the divisions relative to the

. firm's overall cost of capital?

10. What is the role of the oppo1iunity cost in capital budgeting?

11. Discuss the cost ofretained eamings versus the cost of new equity. If these costs differ, why do they differ?

12. What, if anything, would cause a fundamental (pennanent) change in the firm's cost of capital?

please answer 6-8