Companies borrow from various institutions in the capital market to finance their

businesses for short ind long tarm periodis. The concept of a weighted cost of

eapital may be new le some af you but if you were a financial manager why

would the weighted sost af capitai lae important to you as you examine the cost of

bonsowing on lathaif of your flim? Why or why not?

In a similar way what wosid he your flocus as it pertains to the financial market

and interest rates ityoe were to sell bonds to raise capital for your firm? Why or

shy not?