5. )

The cost of capital (WACC) is the same as the cost of equity for firms that are financed

		entirely by equity.
		entirely by debt.
		entirely by bank loans.
		by 50 percent equity and 50 percent debt.
		by both debt and equity.

8. )

Which of the following statements most appropriately describes sensitivity analysis?

		It provides the break-even level of sales for the project.
		It provides the break-even quantity for the project.
		Each of these statements describes sensitivity analysis correctly.
		It looks at different but consistent combinations of variables.
		It looks at the project by changing one variable at a time.