Using the same company from Part I, write a report of 800-1,000 words that demonstrates your understanding of the cost of capital and risk. Specifically, you are to include the following:
- Give a description of the weighted average cost of capital.
- Give a description of the capital asset pricing model.
- Give a description of the security market line.
- Give a description of the cost of debt.
- Calculate the weighted average cost of capital. Explain your answer.
- Calculate the cost of debt. Explain your answer.
- How would you restructure the firm's debt? Explain your answer.