D P E WACC = Fid(1 T.) + :ipt D+P+E LE D+P+E D+P + E The following questions refer to the WACC formula above. In general, what is the relationship between WACC and risk? Select two true statements. a) High risk endeavors will have a low WACC b) High risk endeavors will have a high WACC c) Low risk endeavors will have a high WACC d) Low risk endeavors will have a low WACC Thought problem... Select the very best method by which a company could reduce their WACC: a) Issue Equity b) Issue Debt c) Issue Debt and buy back Equity d) Increase ROE