Question 3
Questions 3 and 4 are based on the following example: a company has a cost of capital (WACC) equal to 7.8%. The cost of equity is 9%, the cost of debt is 4%, the tax rate is 30%, and debt represents 20% of the value of the firm (D/V = 20%).
Suppose the company increases D/V to 30% by issuing debt and repurchasing stock. Which of the following options is correct?
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6. Question 6 Employers don’t expect perfection, so a typo in your cover letter isn’t sufficient reason for them to reject your resume. 1 point  True  False
4. Question 4 A goal of the pre-bid estimate is to set a cost baseline for your project. 1 / 1 point  True  False
6. Question 6 On 1/1/2013, a company grants 1,000 options to its CEO with an exercise price of $60 as compensation. The options vest after three years and expire after…
5. Question 5 Which of the following is the best demand/value hypothesis? 1 / 1 point  If we offer better service, we’ll see sales increase by at least 20%. If we offer…
6. Question 6 Is hope one of the seven strengths you will develop by practicing futures thinking?   1 / 1 point  Yes  No   More good news! When…
11. Question 11 In the example done with the airplane in the video lecture, how did the time taken for the round trip with a head wind going and tail…
