1) What are possible capital components in the WACC equation?
2) What factors in the WACC are under a company’s control ? What factors are affected by the capital markets and interest rates ?
3) What is the relevant risk of a stock, and how is it measured? How is this information useful to an investor?
4) We know the concept of diversification. When we talk about diversification we encounter two types of risk: market risk and diversifiable risk. What exactly do we mean by these two concepts?