1. Differentiate stocks from bonds; and stockholders from bondholders. 2. Explain the components of capital (retained earnings, bonds, preferred equity and common equity) relative to weighted average...

1. Differentiate stocks from bonds; and stockholders from bondholders.

2. Explain the components of capital (retained earnings, bonds, preferred equity and common equity) relative to weighted average cost of capital.

3. What are the factors affecting cost of debt? Define or explain each of them.