Question: 22. Does the value of operations increase, decrease, or remain the same if the weighted average cost of capital rises? 23. In order to obtain

22. Does the value of operations increase, decrease, or remain the

22. Does the value of operations increase, decrease, or remain the same if the weighted average cost of capital rises? 23. In order to obtain a credible result for the horizon value, what relationship must be assumed between the growth rate and the weighted average cost of capital? 24. In the calculation of free cash flow, one current asset and one current liability are omitted since they do not denote operating decisions. (Both of these variables are included in the estimation of the value of common equity and the estimated value of common stock.) Identify these two variables

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