3 DQ’s need to be answers with Zero plagiarism and 250 word count for each question. Due in 6 hours TODAY! Please include all references if necessary.

3 DQ’s need to be answers with Zero plagiarism and 250 word count for each question. Due in 6 hours TODAY! Please include all references if necessary.

Week Four DQ1

What are main elements in calculating the cost of capital? How does an increase in debt affect it? How do you identify an organization’s optimal cost of capital?

Week Four DQ2

What is meant by weighted average cost of capital (WACC)? What are some components of WACC? Why is WACC a more appropriate discount rate when doing capital budgeting? What is the effect on WACC when an organization raises long-term capital?

Week Four DQ3

What is an initial public offering (IPO)? How does an IPO allow an organization to grow financially? When is a merger or an acquisition, instead of an IPO, more appropriate?