Financial Management

1)  

It has often been said that if the company can’t earn a rate of return greater than the cost of capital, it should not make investments.

In your opinion how would you apply the rate of return?

2)

 What effect would inflation have on a company’s cost of capital? Think about how inflation influences interest rates, stock prices, corporate profits, and growth when writing your responses. 

there are 2 questions that you have to answer 2 different copy for each student. each question half page total 4 pages.