Respond to the following comments.

a. “My company’s cost of capital is the rate we pay to the bank when we borrow money.”

b. “Net present value is just theory. It has no practical relevance. We maximize profits. That’s what shareholders really want.”

c. “It’s no good just telling me to maximize my stock price. I can easily take a short view and maximize today’s price. What I would prefer is to keep it on a gently rising trend.”