Question 6 3 pts Which is the CORRECT statement about WACC? Balance Sheet is the corect source for estimating cost of capital Once estimated, WACC may be used repeatedly for some time O WACC must be recalculated each and every time a new project is funded For consistency, firms should use the same WACC for all of its projects Question 7 3 pts Why estimate the cost of capital (WACC)? Required by law for tax statements Required for Cost Accounting For valuing projects For comparison with ROE Question 8 3 pts Jam & Jelly, Inc. wishes to lower their WACC, What should they choose to do? O lower the dividend payout ratio lower the leverage in the capital structure O lower the bond rating Question 9 3 pts What are the CORRECT goals? [Assume T = increase or maximize = decrease or minimize]. WACC g = growth of FCF Emma Edward Elizabeth Elena Elena Elizabeth Edward O Emma Question 10 3 pts The financial risk of a firm can be estimated by Levered Beta Unlevered Beta Levered Beta Minus Unlevered Beta Unlevered Beta Minus Levered Beta