Identifying the optimal cost of capital for organization


Question 1. How would you identify the optimal cost of capital for a organization?

Question 2. What is meant by Weighted Average Cost of Capital (WACC)? Why is WACC a more appropriate discount rate when doing capital budgeting?

Question 3. How does an IPO allow an organization to grow financially? When is a merger or an acquisition, rather than an IPO, a more appropriate way to grow?

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Finance Basics: Identifying the optimal cost of capital for organization
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