Why do firms compute weighted-average costs of capital? 

Reading

Read the following to prepare for this week:

[Selected Company] First Form 10-K post-IPO at http://www.sec.gov/edgar/searchedgar/companysearch.html

 Test your Knowledge (Question):

  1. Why do firms compute weighted-average costs of capital? 

Q.What happens when capital structure changes? 

 Instructions

  • Answer the question in test your knowledge section.
  • Post your answer in the discussion board using the discussion link available at BB (Week-8 :Interactive learning Discussion