1. Cost of capital is the maximum return that manager need to achieve when making investment decisions. A question requiring a 'True/False' answer.(Required) O True False 2. For a levered firm, the cost of equity is equal to the cost of capital of the firm. A question requiring a 'True/False' answer.(Required) O True False 3. If there is one asset that every investor wants to hold, it should be risk-free government bond. A question requiring a 'True/False' answer.(Required) O True O False 4. The beta of market portfolio is 0. A question requiring a 'True/False' answer. (Required) O True False 5.Sudden Death of a CEO is a systematic risk. A question requiring a 'True/False' answer. (Required) True False 6.Unexpected high inflation is a systematic risk. A question requiring a 'True/False' answer.(Required) O True False 7.Only systematic risk remains in market portfolio. A question requiring a 'True/False' answer. (Required) O True False 8. Beta measures the systematic risk. A question requiring a 'True/False' answer.(Required) O True False 9. The beta of Walmart Inc is 0.55. Risk-free interest rate is 2.5%. Historical average of market premium is 10%. Walmart' cost of equity is %. 10. The WACC of this levered firm is A multiple-choice question with one possible answer.(Required) 1. C 10% 2. O 8% 3. O 9% 4. O 12% Manaba Consider a firm whose debt has a market value of $100 million and whose stock has a market value of $50 million The beta of the firm' equity 2 The risk-free interest rate is 2% Market premium is 10% The firm pays a 3 % of interest on its new debt What is the firm' RWACC