QUESTION 10 the asset beta. For a leveraged firm the equity beta is __ greater than less than equal to sometimes greater than and sometimes less than unrelated to QUESTION 13 The weighted average cost of capital for a firm is the discount rate which the firm should apply to all of the projects it undertakes. overall rate which the firm must earn on its existing assets to maintain its value rate the firm should expect to pay on its next bond issue, maximum rate which the firm should require on any projects it undertakes. rate of return that the firm's preferred stockholders should expect to earn over the long term QUESTION 15 An industry is likely to have a low beta if the stream of revenues within that industry is less volatile than the market. economy is in a recessionary period. market for its goods is highly affected by the market cycle. number of firms within the industry is fairly constant industry tends to use a lot of debu financing