Which of the following are true

a.Violations of the M&M assumptions have not yet been found in the real world

b.Under certain conditions the WACC APV and FTE methods will all agree

c.When the firm plans to maintain constant debt/equity ratios then use the FTE method

d.None of the above are true

Using a WACC approach will do which of the following

a.capture the effects of financing choices on a projects value through the discount rate.

b.Typically undervalue a project because it consolidates risk

c.Leave out the tax savings on the cost of debt

d.work well for NPV but not for the IRR hurdle rate

How should you value a project if you expect the firm to change its target debt-equity ratio over time.

a.Use the APV approach to accomodate different assumptions about a firms financing

b.Use only the required return on equity because that shouldn't change

c.Evaluate the project as a lease versus your cost of debt

d.Use unlevered cash flows discounted by the WACC