Referencing textbook readings, lecture material, and current business resources explainmethods for estimating cost of debt, methods of estimating cost of equity. Also, discuss the difference between asset and equity betas used in CAPM to estimate cost of equity.

If WACC is so sensitive to accurate estimation of its components (weights and individual costs), why is it still so widely used in the industry? How would you improve quality of capital budgeting process that relies on using WACC?