The cost of capital formula is theoretically sound but how easy / difficult is to implement in practice?
Subject: Business / Finance
Question
q1. The cost of capital formula is theoretically sound but how easy / difficult is to implement in practice?
q2. How does a company’s use of financial leverage impact its risk premium (cost of equity). What does Hamada equation describe?
q3. How would you respond to a firm’s decision to cut dividends?