o If the after-tax cost of debt is always less expensive than equity, why don’t firms use more debt and less equity?

o What are some of the advantages and disadvantages of raising capital by using debt?

o How would floatation costs impact the WACC, and how could they have been incorporated in the formula?

Note: You can find information about the top 500 stocks at this Web site.

Reference

S&P 500 index chart. (2014). Retrieved from the Yahoo! Finance Web site: http://finance.yahoo.com/echarts?s=%5egspc+interactive#symbol=^gspc;range=1y;compare=;indicator=volume;charttype=area;crosshair=on;ohlcvalues=0;logscale=off;source=;