4. Estimate the debt and equity component costs of capital as well as the WACC. Session 5: 1. What is the capital structure of Home Depot and Lowes

4. Estimate the debt and equity component costs of capital as well as the WACC. Session 5: 1. What is the capital structure of Home Depot and Lowes companies? Has it changed? 2. What are the arguments for and against the use of debt and equity capital at Home Depot and Lowes Companies? 3. As a practical consideration, what are the bond ratings of the two companies and their ability to service debt as indicated by debt management financial ratios? 4. Should Home Depot and Lowes Companies change their capital structure? If so, what would you recommend and why? Session 7: 1. What is the dividend policy of Home Depot and Lowes Companies? Has it changed? If so, what might have been the motivation for the change? 2. Do you think that the dividend policy matters for these companies? What are the arguments for and against changing the dividend policy at Home Depot and Lowes Companies? 3. If you think that dividend policy matters for these companies, are there other alternatives to