Question 1: There are many exogenous variables outside the firms control that could raise or lower the firms cost of capital. Please pick one variable and describe in three to four sentences how a change in this variable would change the firms cost of capital? Hint think about economy-wide changes or industry wide changes and the influence this could have on the firms cost of capital.

Question 2: There are many endogenous variables within the firms control that could raise or lower the firms cost of capital. Please pick one variable and describe in three to four sentences how a change in this variable would change the firms cost of capital? Hint think about strategic moves a company could make that could influence the firms cost of capital.