What is the company wacc

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Question 1 - When determining relevant cash flows for project evaluation, we should _____.

discount interest expenses to the present

add back in interest expenses after subracting taxes

ignore interest and other financing expenses

subtract interest expenses from EBIT

Question 2 - Sunk costs are costs that _____.

may change based on the NPV of the project

will occur in the future

have been incurred in the past and cannot be recouped fully

are due to a sunken ship

Question 3 - Daytona Racing Inc. has a capital structure of 21% debt and 79% common stock. The expected return on the firm's debt is 5% and the expected return on the firm's equity is 11%. Assume perfect capital markets. What is the company's WACC?

Reference no: EM132544346

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