Question: 1.What is (WACC), why is it used? 2. Why the weighted average cost of capital (WACC) is used in capital budgeting? 3. Estimating the costs

1.What is (WACC), why is it used?

2. Why the weighted average cost of capital (WACC) is used in capital budgeting? 3. Estimating the costs of different capital componentsdebt, preferred stock, retained earnings, and common stock? 4. How to combine the different component costs to determine the firms WACC?

5. Cost of Equity: CAPM, what is it used for?

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