Chapter 11 Part 1

1. List the two ways to compute the cost of equity and briefly describe when each is appropriate to use
2. List the two parts to calculating the cost of debt for a company, and explain why the second part is necessary
3. Explain when the company's WACC should be used to evaluate a new business project, and when a different WACC should be used, and when a different WACC is justified how the company's WACC should be adjusted