Using the key concepts you have learned in CH.10 THE COST OF CAPITAL

An Overview of Weighted Average Cost of Capital (WACC)

Basic Definitions

Cost of Debt

Cost of Preferred Stock

CH.11 THE BASICS OF CAPITAL BUDGETING

An Overview of Capital Budgeting

Net Present Value

Internal Rate of Returnchapters 10 and 11Cost of Capital and Capital Budgeting

, write a minimum of a 3 page paper on 1 of the following subjects from the perspective of the CFO:

1-You are starting a new company and are trying to come up with your optimal capital structure.Describe the nature of your business and why you believe your capital structure to be the best fit for your company.An example may be that you are attempting to open an on-line shoe company, or perhaps a neighborhood coffee shop.

2-You are CFO of any real company today and are thinking of rolling out a new project.Describe the rationale that goes into the project, resources used, and expected return on said project. An example might be Apple rolling out the newApple Watch.

Your paper should mention key concepts from the last 2 weeks readings such as WACC, NPV, Capital Budgeting, IRR, etc.The idea is to see you take a stab at the numbers to see what it is like to be in the position of CFO and the thought process involved.Please complete paper in APA format and cite all resources.