Discuss the relationship between cost of capital and firm’s value –provide an illustrative example supporting your answer.

a) Discuss the relationship between cost of capital and firm’s value –provide an illustrative example supporting your answer. b) Is there an optimal capital structure? Explain carefully your answer. c) Is there an optimal dividend policy? Explain carefully your answer. d) Why does the owner-entrepreneur of a startup decide to make it public(IPO)? Is there an optimal time for a (startup) firm to become public?Explain carefully your answer. e) Why does the quality of corporate governance may affect firms’ value? f) What is a corporate finance theory? What do you understand bycorporate finance empirical findings? Suppose you are the CEO of alarge public firm and read in a newspaper that new empirical findingsrecently released contradict a well-established corporate financetheory. Would you still believe in that corporate finance theory?Explain carefully your answer.

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