Note: If you need to use a market risk premium $(r_m-r_f)$ please follow the intuition described in the lect not the information provided in case exhibit $5.$

Question $1$

There are different ways of describing the WACC. Which of the following descriptions is accurate for Walmart's WACC? Select all that apply.

Walmart's WACC is the weighted average cost of capital for the sources of capital used in Walmart's capital structure.

Walmart's WACC is the appropriate discount rate for future projects at Walmart that have the same risk as the current projects at Walmart.

Walmart's WACC is the appropriate discount rate in a DCF valuation of Walmart's future FCFs$.$