Is the goal of the company to maximize wacc

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Problem 1: What are the main advantages of NPV vs. IRR vs. payback criteria? If interests change, how are PV, FV, prices of bonds/stocks affected?

Problem 2: Is Rd (Cost of Debt) greater than Re (Cost of Equity) and why?

Problem 3: Is the goal of the company to maximize WACC?

Problem 4: Credit rating agencies just downgraded debt of company XYZ. What will that do to YTM, prices of XYZ's bonds?

Reference no: EM133012255

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