Discussion: Cost Of Debt Equity
Why does a firm generally have a lower cost of debt than cost of equity? If the cost of debt is generally below cost of equity, why would firms want to issue equity? Which factors do you think most impact the weighted average cost of capital? The tax rate? The percentages of debt or equity? What has the biggest impact on the cost of equity?
The response should include a reference list. Double-space, using Times New Roman 12 pnt font, one-inch margins, and APA style of writing and citations.