#1 Which of the following is not always a way to increase the value of a company?

a. Increase the operating profitability (NOPAT/Sales).

b. Decrease the weighted average cost of capital (WACC).

c. Increase the growth rate of sales.

d. Decrease the capital requirement (Capital/Sales).

#2 The Adjusted Present Value approach to valuations works best when? a. The company is financed with all debt.

b. The firm's debt/equity blend is equal to one.

c. The WACC is greater than 1.00

d. There is a changing capital structure.

e. The company is an all-equity firm.