Why Do Firms Compute Weighted-Average Costs of Capital

question 44

Essay

Why do firms compute weighted-average costs of capital?

Examine the economic rationale and effects of licensing on market participants and overall market outcomes.

Identify the conditions under which price controls and quantity controls may lead to inefficiencies in markets.

Assess the implications of various forms of government interventions on the allocation of resources and market outcomes.

Understand the principles and outcomes of different types of reinforcement and punishment in behavior modification.