Question: Prepare an excel spreadsheet that will: Compute a firms weighted average cost of capital. Determine how much financing will come from the various component sources.

  1. Prepare an excel spreadsheet that will:
  1. Compute a firms weighted average cost of capital.
  2. Determine how much financing will come from the various component sources.
  3. Split common equity into internal and external components and adjust the weighted average cost of capital of various levels of internal equity availability.
  4. How can the Capital Asset Pricing Model (CAPM) be used to estimate the cost of capital for a real investment decision? [hint: Rf + b(Rm Rf)].

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