Overview: For this task, you will explain the importance of cost of capital to organizational success and work through some calculations to understand their value.
Prompt: First, review the module resources, especially Chapter 11 in the textbook. Then, address the following:
Answer the following questions based on your organization chosen for the final project. Write your response in a separate Microsoft Word document:
o Importance of Cost of Capital: Why is cost of capital important to an organization, and what does it measure?
o Meaning of Calculations: How do organizations calculate various costs, and what do these calculations mean to business?
After completing the written portion, calculate answers to the problems in the worksheet.
Refer to the textbook and other course materials to support your responses.