What is the average beta? If a stock has a beta of 1.20, what does that imply about its risk relative to

the market?

Why is the after-tax cost of debt, rather than its before-tax required rate of return, used to calculate the

weighted average cost of capital?

How can the WACC be both an average cost and a marginal cost?

What is bond indenture? Explain the difference between the yield to maturity and the yield to call.

What are the two ways a sinking fund can be handled? Which method will be chosen by the firm if

interest rates have risen? If interest rates have fallen?