Post by addressing all of the following topics. Your answers should be thoughtful, detailed and accurate. Before posting, review your answer for any grammatical mistakes.

a) Discuss what role the cost of capital plays in capital budgeting (i.e. the allocation of capital).

b) Discuss a few of the advantages and disadvantages of obtaining capital through 1) Debt and 2) Equity.

c) Describe how the Weighted Average Cost of Capital (WACC) is determined for a business.