I don’t understand this Accounting question and need help to study.
Part 1
(This portion is already completed see attached paper)
Part 2
Using the company AT&T from Part I, add to that paper write a report of 400-600 additional words that demonstrates your understanding of the cost of capital and risk. Specifically, you are to include the following:
- Give a description of the weighted average cost of capital.
- Give a description of the capital asset pricing model.
- Give a description of the security market line.
- Give a description of the cost of debt.
- Calculate the weighted average cost of capital. Explain your answer.
- Calculate the cost of debt. Explain your answer.
- How would you restructure the firm’s debt? Explain your answer.
