Evaluate and explain the cost of capital in doing so please take on the role of an expert in this area and create a PowerPoint Presentation to be given to a group of executives for them to understand what cost of capital means. Formulate and provide conclusions and recommendations for this group. Include in your presentation the following:
What is the cost of capital and how does it play a role in various decisions made by financial managers?
What factors determine the cost of capital?
How to compute cost of debt, preferred and common stock capital and put them together to develop the overall cost of capital for the firm