Below your table, write an essay discussing the importance and process of calculating the weighted average cost of capital. The list below suggests some (though not all) of the topics that you should address in your paper: Why do firms need to know this value? How is the weighted average cost of capital used to make decisions? What are each of the components of the weighted average cost of capital and how are each of these components estimated? What are some possible reasons for why the WACC’s in your table differ from one another? Be sure to discuss the relationship between risk and expected return as reflected in bond and stock yields.
