2 questions

Which of the following statements is true regarding the estimation of a firm's weighted average cost of capital, WACC? Select one: a. WACC should be estimated as an embedded (historical) cost of capital on a before tax basis b. WACC should be estimated as a marginal cost of capital on an after-tax basis C. WACC should be estimated as a marginal cost of capital on a before tax basis d. WACC should be estimated as an embedded (historical) cost of capital on an after-tax basis Methods for estimating a firm's cost of equity include all of the following except Select one: a. Bond Yield Plus Expected Risk Premium b. Security Market Line, SML C. Constant Growth Model Approach ed. Standard Deviation Adjustment Approach