When looking at value of the firm, the cost of equity is the proper discount.

Question 1 options:

True

False

In the video Week 3 - Lesson 1, why does Dan Rogers use solver to find the balancing value rather than just using the imbalance amount (labeled Assets minus L&E in the spreadsheet)?

Question 5 options:

Because of GAAP rules

Because that would create a circular reference in Excel

Because when debt is changed, interest expense will also change

Because retained earnings needs to be updated

In the video Week 3 - Lesson 1, why does Dan Rogers use solver to find the balancing value rather than just using the imbalance amount (labeled Assets minus L&E in the spreadsheet)?

Question 5 options:

Because of GAAP rules

Because that would create a circular reference in Excel

Because when debt is changed, interest expense will also change

Because retained earnings needs to be updated