What is capital and how can it be used? Explain why the weighted average cost of capital (WACC) is used in capital budgeting. What are the cost of capital factors that a firm can control? Explain why and provide a detailed example of each. Also, what are the cost of capital factors a firm cannot control? Why is it impossible for a firm to control these factors? How does risk affect capital? What is the relationship between risk and capital in regards to financial decisions? Explain all your answers in detail.
Your completed written assignment should be 2-3 pages. All submissions should be formatted in a 12 point Times New Roman font. Your answer should contain paraphrased information from at least one valid source other than your textbook, and all citations and references should be properly cited in APA format (6th edition).