The cost and capital

– What is the basic relationship between risk and return and how is the reflected in the value of the firms stock? the cost of debit?.

– What are the primary factors that should be considered when establishing a firm’s capital structure?.

_ What are the primary differences and similarities between financial risk and business risk?.

Note:

The final paragraph ( three or four sentences) of your initial post should summarize the one or two key points that you are making in your initial response.

Your posting should be the equivalent of 1 to 2 simple spaced ( 500- 1000 words) in length.

– Correctly identified and described the relationship between risk and return and describe how risk is accounted for the cost of the firm’s new debit and equity issues.

– Correctly identified major factors that must be considered when establishing a firm’s capital structure and described the nature of financial risk and business risk and how they affect the firm.

– Work was clearly written, with logical flow, with minimal errors ( including APA format) and utilize appropriate citation/ reference of sources.