1. What are the components of Capital? List each and explain its legal implications.
2. What is the ‘Weighted Average Cost of Capital’? WACC.
3. What is the value in understanding the WACC? How can you influence/impact it as a manager?
4. How are Bonds and Stocks different? From a cost to the company, which is more expensive to issue and why? Give examples, expand on your response….avoid brevity….
5. From an ongoing perspective (once issued), which is more (possibly) dangerous to a company? A Bond or Stock? Why? Give specific examples both from a legal and cost of money and liquidity perspective to substantiate your opinion….