Question 1:

When estimating the cost of debt to use in the WACC, which of the following types of debt should be included? Lines of credit Commercial paper Publicly traded bonds All of the above

Question 2:

The best method to use when estimating a firms discount rate is the _____.

weighted average cost of capital approach

net present value approach

capital asset pricing model

internal rate of return approach

Question 3:

Which of the following mathematical expressions is used to calculate the economic break-even point?

(Revenue Fixed cost) / Unit contribution

(Revenue Transaction cost) / Unit contribution

(Revenue Marginal cost) / Unit contribution

(Revenue Variable cost) / Unit contribution

*Please answer Question 1-3:)*