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Tia :) 2. Factors affecting a firm's weighted cost of capital The importance of knowing a terme cost of capital Purple Lemans considering investing in

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2. Factors affecting a firm's weighted cost of capital The importance of knowing a terme cost of capital Purple Lemans considering investing in project whose risk is greater than the firm's current risk lever based on any method for assessing risk Which of the following should management do when evaluating this project> To take the higher risk levet into account, they will need to use a discount rate that is greater than the tout of capital to evaluate the project to take the righer level into account, they will need to increase the IRR of the project, to take the righer nok level into account, they will need to create the NPV of the project They should always reject the project, because it will increase the time risk level Which of the following statements correct When all other factors are held constant, a higher tax rate will lower a firm's weighted average cost of capital only if the firm uses datt financing The cost of riting funds from retained earnings as sily a lot cheaper than the cout of debt financing, because the firm already possess the funds in indsamings Inform wants to lower its cost of debt. It can molyse debt with a lower coupon rate

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