1.calculate the cost of capital(show calculations) using weighted
average cost of capital and capital-asset pricing model (beta)
2. Discuss the relative strenghts and weaknesses of the methods above
as to the appropriate discount rate for the firm
3.Describe why these two methodologies may produce different results
4.identify specific reasons why the cost of capital may differ among
th selected companies. What does this say about their past financial
performance and future prospects
How would you recommend the firms lower their cost or capital?
The selected companies are MCI, SBC,and Verizon