Question: 1. Define the WACC. 2. Why is it important in corporate finance? 3. Should a financial manager use the average cost of capital raised or

1. Define the WACC.

2. Why is it important in corporate finance?

3. Should a financial manager use the average cost of capital raised or the marginal cost of capital and why?

4. Whats wrong with (critique) We are only raising debt this year and it has a 5% after tax cost, so we should use this, and not our WACC of 10% to evaluate this years projects?

1. Define the WACC.

2. Why is it important in corporate finance?

3. Should a financial manager use the average cost of capital raised or the marginal cost of capital and why?

4. Whats wrong with (critique) We are only raising debt this year and it has a 5% after tax cost, so we should use this, and not our WACC of 10% to evaluate this years projects?

1. Define the WACC.

2. Why is it important in corporate finance?

3. Should a financial manager use the average cost of capital raised or the marginal cost of capital and why?

4. Whats wrong with (critique) We are only raising debt this year and it has a 5% after tax cost, so we should use this, and not our WACC of 10% to evaluate this years projects?

1. Define the WACC.

2. Why is it important in corporate finance?

3. Should a financial manager use the average cost of capital raised or the marginal cost of capital and why?

4. Whats wrong with (critique) We are only raising debt this year and it has a 5% after tax cost, so we should use this, and not our WACC of 10% to evaluate this years projects?

1. Define the WACC.

2. Why is it important in corporate finance?

3. Should a financial manager use the average cost of capital raised or the marginal cost of capital and why?

4. Whats wrong with (critique) We are only raising debt this year and it has a 5% after tax cost, so we should use this, and not our WACC of 10% to evaluate this years projects?

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1. Define the WACC.

2. Why is it important in corporate finance?

3. Should a financial manager use the average cost of capital raised or the marginal cost of capital and why?

4. Whats wrong with (critique) We are only raising debt this year and it has a 5% after tax cost, so we should use this, and not our WACC of 10% to evaluate this years projects?

1. Define the WACC.

2. Why is it important in corporate finance?

3. Should a financial manager use the average cost of capital raised or the marginal cost of capital and why?

4. Whats wrong with (critique) We are only raising debt this year and it has a 5% after tax cost, so we should use this, and not our WACC of 10% to evaluate this years projects?

1. Define the WACC.

2. Why is it important in corporate finance?

3. Should a financial manager use the average cost of capital raised or the marginal cost of capital and why?

4. Whats wrong with (critique) We are only raising debt this year and it has a 5% after tax cost, so we should use this, and not our WACC of 10% to evaluate this years projects?

1. Define the WACC.

2. Why is it important in corporate finance?

3. Should a financial manager use the average cost of capital raised or the marginal cost of capital and why?

4. Whats wrong with (critique) We are only raising debt this year and it has a 5% after tax cost, so we should use this, and not our WACC of 10% to evaluate this years projects

5. what is short selling and why do people do it? Is it investing or gambling

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