Your boss, B brown is looking at the future prospects of the xxx company as a possible

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Question:

Your boss, B brown is looking at the future prospects of the xxx company as a possible investment. Joe Rivera, CFO of Company xxx, recently specified that the companys weighted average cost of capital (wacc) has improved in recent months. Rivera also specified that this change would influence xxxs ability to accept future capital investment. Brown has asked him to explain these statements by the CFO.

Write a memo to explain the components of a Companys WACC.
Indicate how an increase in the cost of capital influences the viability of future capital investment alternatives.