Computing the cost of capital, which sources of capital should be considered? Why do firms calculate their weighted average cost of capital? As the financial manager for your
company, explain how you would use the cost of capital of your firm, or a firm you are familiar with, to determine the required rate of return on investment opportunities. Select an article that
relates to cost of capital and doing business in Saudi Arabia.
Question 2: Why do we focus on cash flows rather than accounting profits in making our capital-budgeting decisions? Why are we only interested in incremental cash flows rather than total cash
flows? As a financial manager, explain why these concepts are important to business leaders in Saudi Arabia. Select an article that relates to these values and doing business in Saudi Arabia.
In both questions: – Summarize the article in two paragraphs describing what you think are the most important points made by the authors