Briefly describe the different sources of capital that are considered when calculating the weighted average cost of capital (WACC).

. How are the component costs combined to forma weighted average cost of capital (WACC),and why is it necessary to use the WACC in capitalbudgeting?

What is the weighted average cost of capital?

How is the weight in the weighted average cost of capital calculated

Describe two factors to be considered when calculating the weighted average cost of capital (WACC) for a company.

a.  Provide a brief overview of capital structure effects.  Be sure to identify the ways in which capital structure can affect the weighted average cost of capital and free cash flows.

Why are market-based weights used instead of book-value-based weights when computing the weighted average cost of capital (WACC)?

What are the different factors affecting the requirements of working capital? Enumerate.

Explain in words the difference between net working capital and net operatingworking capital.

Explain the difference between capital assets, capital investments, and capital budgeting.