Question $1(1$ point$)$

The cost of debt used to determine the WACC is the yield to maturity on the firm's new and existing debt.

True

False

Question $2(1$ point$)$

The after$-$tax cost of debt $($i$.$e$.,$ Rd ${?}^{**}(1-T))$ is used to calculate WACC because firms can deduct their interest

expense before determining their taxes.

True

False

Question $3(1$ point$)$

The two approaches mentioned in the video for estimating the cost of equity are the capital asset pricing

model and the dividend discount model.

True

False

Question $4(1$ point$)$

Based on the calculated WACCs shown on the last slide of the video, the smallest of the calculated WACCs

was $4\mathrm{.}3\%,$ and the largest of the calculated WACCs was $15\mathrm{.}8\%.$

True

False

Question $5(1$ point$)$

Based on the calculated WACCs shown on the last slide of the video, if we remove the two smallest values

and the two largest values, the range of values for the remaining WACCs shown is from a low of $6\mathrm{.}1\%$ to a

high of $10\mathrm{.}6\%$

True

False