What capital components are typically included when estimating a firm’s corporate cost of capital? Is the corporate cost of capital the same for all firms?

Posted: February 25th, 2022

1.Critique this statement: “The use of debt financing lowers the net income of the firm, and hence debt financing should be used only as a last resort.” 2.Discuss some factors that health services managers must consider when choosing between debt and equity financing. Consider both investor-owned and not-for-profit firms in your answer. 3.What capital components are typically included when estimating a firm’s corporate cost of capital? Is the corporate cost of capital the same for all firms? Explain your answer.