Surrounding fiscal cliff have on capital budgeting

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1. What impact does all of the uncertainty surrounding the fiscal cliff have on capital budgeting? Does that impact the stock price?

2. Should a company have one cost of capital which it applies to all projects under consideration or should there be divisional costs of capital? Don't look this one up - I want you to think about it and tell me what you think.

3. A firm can earn the cost of capital on any cash-inflows by:

A) Selling stock and bonds

B) Buying back the firm's bonds and stock

C) Increasing fixed or variable costs

D) Reducing fixed costs

E) Reducing total variable costs

Reference no: EM131913360

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