1. T/F The highest EPS numbers will always produce the lowest WACC figure to maximize stock price

2. T/F The goal of a firm is to maximize the value of its stock and that occurs at the point where the WACC is the highest 3. T / F Capital structure refers to the % of equity and the % of debt affirm has with the goal of minimizing that cost or finding the lowest WACC. 4. T/F The growth rate can be found by multiplying the EPS by the return on equity 5. T/F For mutual exclusive projects use NPV as your dedision making tool, but for independent projects choosing ones with an IRR>WACC should give you a correct decision.

6. T/F if debt costs 5 % after tax and equity costs 9 %, then a 60/40 capital structure of stocks and bonds will have a WACC of 7.4 %