I have an assignment for Corporate Finance. see below : 4-2 Journal: Capital Structure and Cost of Capital Email Memo Instructions Before completing this activity, review Chapters 14 and 15 of yo

I have an assignment for Corporate Finance.  see below :

4-2 Journal: Capital Structure and Cost of Capital Email Memo

Instructions

Before completing this activity, review Chapters 14 and 15 of your textbook. In this scenario, imagine that you are a financial analyst at the selected corporation for your final project, and one of your peers from a non-financial department is confused about why capital structure is important. You have been asked to explain the topic in terms that are not too technical. In an email to your peer, address the following points:

• Explain the meaning of capital structure, cost of capital, and weighted average cost of capital (WACC).
• Describe how capital structure and cost of capital affect the way that a company is valued by investors.

Textbook: Financial Management: Principles and Applications, Chapter 14

Access this resource by going to the MyFinanceLab area under the course Table of Contents menu.

• What do we mean by the “cost of capital”? Why do organization treasurers care about it?
• Why is it difficult to estimate the required rate of return for common stock and retained earnings?
• What is the weighted average cost of capital (WACC)?

Textbook: Financial Management: Principles and Applications, Chapter 15

• How can firms actively manage their capital structure? How can they lower it? How can they raise it?
• Is there an ideal capital structure? If not, why not?
• Do individuals and households have a “capital structure” and a WACC?

Textbook: Financial Management: Principles and Applications, Chapter 16

• How do firms distribute cash to their shareholders?
• Is a corporate dividend policy necessary?

Is there a relationship between dividend policy and capital structure