1. The weighted average cost of capital for a firm may be dependent upon the firm's:

   I. dividend growth

   II. debt-equity ratio

   III. unsystematic risk of the firm

   IV. tax rate

   	A.	I and III only
   	B.	II and IV only
   	C.	I, II, and IV only
   	D.	I, II, III, and IV

2. The weighted average cost of capital (WACC) for a whole sale business:

   	A.	is unaffected by changes in corporate tax rates.
   	B.	is equivalent to the aftertax cost of the firm's liabilities.
   	C.	should be used as the required return when analyzing a potential acquisition of a similar whole.
   	D.	is the return investors require on the total equity of the firm.