You work for a constant-growth firm that is valued at $500 million. It has a capital structure of 25% debt and 75% equity, and there are no short-term investments. Your firm's current tax rate is 35%, but Congress is expected to pass legislation that will decrease it to 25%. If the firm's capital structure and costs of capital remain constant, what will happen to the firm's WACC? I am still waiting to start bowling. The WACC could increase, decrease, or remain constant. The WACC will remain constant. The WACC will increase. The WACC will decrease. A project has an up-front cost of $150,000. All subsequent cash flows are positive. The project's required return is 10 percent and its net present value is -$10,000. Which of the following statements is most correct? The project's internal rate of return equals 10 percent. You need more information to determine whether the internal rate of return is greater than, less than, or equal to 10 percent. The project's internal rate of return is less than 10 percent. The project's internal rate of return is greater than 10 percent. I really should have come to class more often