Project 5: Cost of Capital, Risk/Return, and Capital Budgeting

Step 2: Review and Practice

Using the  Project 5 Review and Practice Guide, review the options for financing investments available to LGI. Then, apply what you have learned by completing the exercises and problems referenced in the  Project 5 Review and Practice Guide. 

You must review the guide and do the practice exercises and problems so that you

· are prepared to have informed discussions with your team about capital structure and appropriate leverage,

· understand risk and return,

· can make recommendations for financing LGI's investments, and

· can complete your mission, turning around LGI.