1) WACC is basically calculated by the sum of costs per component multiplied by the respective proportional weight (how much the company uses a given cost of capital) [See Appendix 1] . Since financial management is focused on maximizing the stock price, an optimal cost structure based on these three factors is needed. In the case of SIVMED, according to the definition of WACC, all capital bases should be included in its WACC. These include common stocks, preferred stocks, bonds and long-term loans. In addition to being able to calculate the costs of capital, the WACC also determines how much interest SIVMED must pay for all its activities. The value of the company's shares, which we want to maximize, depends on the after-tax cash flow. Therefore, after-tax values ​​are also needed for the WACC. Additionally, the cost of capital is used to determine the cost of each debt, stock, or common equity. Being able to analyze them will be essential to decide what and how to acquire new capital. Thus, current marginal costs are ideally more essential than historical costs.2)a. SIVMED's cost of debt is 6.6% [See Appendix 2a]b. Yes, quotes should be part of your cost of debt calculation. This is because floatation costs are generally included in the debt calculation component as part of the nominal rate calculation of the cost of debt, which covers both the underwriting spread and the costs paid by the issuing company.c. The EAR (6.6%) can handle debts with varying payment frequencies. Nonetheless, nominal rates should be used because the total costs, which are naturally small on government debt issues, decrease the net proceeds of the sale.d. Coupon rates differ from those of 15-year bonds and 30-year bonds because we consider the risk of the bond. Typically, the longer the time to maturity, the greater the risk, and therefore, in general, the greater the cost of debt. Therefore the estimate is invalid. To make it more valid, however, we need to fit the yield curve calculated using the 15-year bond to a calculation using a 30-year bond. One way to calculate the cost of debt when the outstanding debt has not been negotiated is to use a synthetic rating based on the company's financial ratios (i.e. the interest coverage ratio). By obtaining a default spread based on the ratio and adding the risk-free rate, an updated estimate of the pre-tax cost of debt will emerge.f. That would be important because a callable bond, a bond that can be repurchased by the issuer before its maturity, can reduce the cost of debt when the interest rate falls.