In computing the wacc why must the cost of equity be higher, Financial Management

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In computing the wacc why must the cost of equity be higher

1. In computing the WACC, why must the cost of equity be higher than the cost of debt before adjusting anything for taxes or weight?

2. It is said that the more the current asset exceed current liabilities, the lower will be the return to shareholders and the lower will be the risk to managers. Why will this be true?

3. What is the monthly payment on a $300000 house with 6% APR on a 30 year loan? How much total interest do you pay?

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Financial Management: In computing the wacc why must the cost of equity be higher

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