1. The Weighted Average Cost of Capital (WACC) is

a. the rate at which a companys future cash flows need to be discounted

b. to arrive at a present value for the business.

c. all of the above reflect the WACC

d. the value of a company equals the present value of its future cash flows

2. Flotation Cost is

a. the cost for servicing equity capital

b. the cost for using debt capital

c. the cost for using retained earnings

d. the cost for raising the new capital