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During this week we learned the importance of knowing and managing the firm's cost of capital. The cost of capital is determined by the makeup
During this week we learned the importance of knowing and managing the firm's cost of capital. The cost of capital is determined by the makeup of the organization, whether it is a for-profit business or a not-for-profit. In this week's discussion let's explore how this difference Impacts on the organization's financing options and consequently, its cost of capital. Concerning available financing options, explain whether a for-profit organization or a not-for-profit organization is at a disadvantage. Are both types of organizations subject to external credit rating assessments? Why are not-for-profit organizations more reliant on high bond market ratings, relative to for-profits? What likely factors determine the rating a business attains? Draw from your learning in earlier weeks in your response
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