Question: 1. Be able to explain what the weighted average cost of capital for a firm is and why it is often used as a discount

1. Be able to explain what the weighted average cost of capital for a firm is and why it is often used as a discount rate to evaluate projects

2. Be able to explain and calculate the cost of debt for a firm

3. Be able to explain and calculate the cost of common stock and the cost of preferred stock for a firm

4. Be able to explain and calculate the weighted average cost of capital for a firm

5. Be able to explain the limitations of using a firms weighted average cost of capital as the discount rate when evaluating a project, and discuss the alternatives to the firms weighted average cost of capital

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