4. Explain: (a) why it is important for the CFO of a corporation to provide an accurate estimate of the firm's internal cost of funds (opportunity cost of capital), including the potential harms from an inaccurate calculation; (b) the basis for that estimate (.e., what is the internal cost of funds supposed to represent); (c) why it may be difficult to produce that estimate. 5. (a) Explain why, in the absence of regulation, bond ratings companies may have: (i) an incentive to provide inaccurate ratings, (ii) a a countervailing incentive to provide accurate ratings. (b) What laws or regulations would you recommend, to maximize the companies incentives to provide accurate ratings