1. Explain component costs of capital and weighted cost of capital (WACC), using an example relevant to you.)
2. Compare and contrast WACC and Required Rate of Return (RRR) of investors. Discuss how costs of capital learned in this module relate to Capital Asset Pricing Model (CAPM) learned in an earlier module.
3. Evaluate the impact of business risks and market risks on corporate capital structure. Discuss the importance of maintaining an optimal corporate capital structure.