In computing the cost of capital, which sources of capital should be considered? Why do firms calculate their weighted average cost of capital? As the financial manager for your company, explain how you would use the cost of capital of your firm, or a firm you are familiar with, to determine the required rate of return on investment opportunities. Use the Jacobs and Shivdasani (2012) article as one of your sources.
Remember to use in-text citations and list APA style references
In computing the cost of capital, which sources of capital should be considered?
i) Debt-such as bonds
ii) Equity- preferred shares and common shares
Why do firms calculate their weighted average…