The cost of capital is the cost a company bears to obtain external financing.A company's cost of capital is critical because it determines which long-term projects are profitable for the entity to undertake.The higher the cost to obtain funds,the fewer the long-term projects are profitable for a company to pursue.
Required:
Explain the role of financial statements generally and the roles of the FASB,the AICPA,the SEC,and the IASB in lowering the cost of capital.

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The Answer of The cost of capital is the cost a company bears to obtain external financing.A company's cost of capital is critical because it determines which long-term projects are profitable for the entity to undertake.The higher the cost to obtain funds,the fewer the long-term projects are profitable for a company to pursue.
Required:
Explain the role of financial statements generally and the roles of the FASB,the AICPA,the SEC,and the IASB in lowering the cost of capital.

The Cost of Capital Is the Cost a Company Bears