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The ROIC on a project must be (higher, equal or below) the cost of capital for the project for the project to create wealth for
- The ROIC on a project must be (higher, equal or below) the cost of capital for the project for the project to create wealth for the company? Pick one.
- Between using book weighting or market weightings, which is more justified in theory? Explain.
- Between debt and common stock, which form of capital is less expensive for the same corporation? Why?
- What adjustment is needed to the pretax cost of debt to get the after-tax cost of debt? Why?
- What is Beta and what does it measure? and how could you estimate a beta if you are not a publicly traded company?
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