1. A large healthcare system with many subsidiaries that operate in diverse lines of business should estimate _________ .

   		weighted average cost of capital
   		risk-adjusted corporate cost of capital
   		divisional costs of capital
   		project cost of capital

2. Which of the following is a capital structure decision?

   		paying interest expense
   		purchasing an MRI machine
   		repurchasing shares of common stock
   		increase the cash balances on the balance sheet