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      "text": "232. Between a small company and a big company, which company would you expect to have a higher WACC? \"All else equal, I would expect a small company to have higher WACC. WACC measures risk and a small company is riskier than a big company.\"",
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      "text": "235. The US Federal Reserve just announced an increase in interest rate. How will this affect the company's Cost of Debt? \"The company's Cost of Debt will likely increase as well.\"",
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      "text": "237. Can Cost of Debt be higher than Cost of Equity? \"In theory, no. Cost of Debt cannot be higher than Cost of Equity. Equity is lower than Debt in the capital structure. Therefore, Equity is always riskier than Debt so it should always have a higher discount rate.\"",
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      "text": "230. Can you calculate WACC, CoE and CoD for private companies? Or are these for public companies only? \"Yes, you can calculate WACC, CoE and CoD for private companies.\"",
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      "text": "236. A company decided to borrow more debt. How will this affect the company's Cost of Equity? \"Higher debt can increase Beta, which can increase the company's Cost of Equity.\"",
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      "text": "234. Between a company with no debt and a company with lots of debt, which company would you expect to have a higher Cost of Debt? \"I would expect the company with lots of debt to have a higher Cost of Debt. That's because the greater the amount of debt, the greater the risk of bankruptcy.\"",
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      "text": "233. Between a tech startup and a utility provider, which company would you expect to have a higher Cost of Equity? \"I would expect the tech startup to have higher Cost of Equity. A tech startup is generally riskier with more uncertainties than a utility provider. Therefore, it should have a higher Cost of Equity.\"",
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