What are main elements in calculating the cost of capital? How does an increase in debt affect it? H

What are main elements in calculating the cost of capital? How does an increase in debt affect it? How do you identify an organization’s optimal cost of capital?

DQ 2: What is an initial public offering (IPO)? How does an IPO allow an organization to grow financially? When is a merger or an acquisition, instead of an IPO, more appropriate?