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1. What do we mean by a corporation's Weighted Average Cost of Capital (WACC)? 2. What is the significance of a corporation or one of

1. What do we mean by a corporation's Weighted Average Cost of Capital (WACC)?

2. What is the significance of a corporation or one of its divisions having a positive Economic Value Added (EVA)?

3. What would happen to a corporation's stock price if the actual return on its average-risk investments was higher than its WACC. And what would happen to a corporation's stock price if the actual return on its average-risk investments was consistently lower than its WACC?

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