Each student will be expected to post a response to the original prompt. Simplistic posts will not receive credit; so be aware of the depth of your posts prior of posting. It is important that you read all the content in every discussion.

Week Six Questions

1. Why is the after-tax cost of debt rather than the before-tax cost used to calculate the WACC? (Ch. 10)
2. Which one of the factors a firm can use to control the cost of capital would be the easiest to focus on for a finance manager? Explain your answer. (Ch. 10)
3. Suppose a firm estimates its WACC to be 10%. Should the WACC be used to evaluate all of its potential projects even if they vary in risk? If not, what might be "reasonable" costs of capital for average-, high-, and low-risk projects?
4. What part of this course did you find the most challenging? What part of this course did you enjoy?

Initial Post should include:

• Include at least one (1) source (textbook or outside source) should be cited in your response

Initial Post is Due by Day Four (4)