Capita Formula

Question 1

write at least 500 words that respond to the following questions with

your thoughts, ideas, and comments. This will be the foundation for

future discussions by your classmates. Be substantive and clear, and use

examples to reinforce your ideas.

  1. In the weighted average cost of capital formula, the after-tax cost of debt is used instead of the before-tax cost of debt. However, no such adjustment is made to the cost of equity. Are you surprised by this different tax handling of debt versus equity? Why or why not?
  2. If a corporation borrowed all of the money for its project at the risk-free rate, does that mean that the project’s cost of capital is the risk-free rate?
  3. When calculating the weighted average cost of capital, would it matter more if book values instead of market values were used for equity instead of debt? Please explain.

Be sure to document your posts with in-text citations, credible sources, and properly listed references.

Question 2

Review the Six Types of Involvement: Keys to Successful Partnerships .

from the National Network of Partnership Schools. Using the

terminology from this model, describe the kinds of parent and community

involvement you have observed in schools or child care centers where you

have worked, volunteered, or attended. If you do not have this kind of

experience, visit the websites of several local child care centers and

summarize the information about parent involvement that the centers have

included. Also describe how these schools or centers could improve

their level and type of parent and community involvement based on the

NNPS model. Your initial discussion post should be at least 200 words

in length.

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