A company with an average WACC of 10% adjusts for risk by adding 2% f

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A company with an average WACC of 10% adjusts for risk by adding 2%
for high risk projects and subjecting 2% for low risk projects. Which of the following projects should the company accept?
A)An average risk project with an IRR of 10%
B)Low risk project with an IRR of 7%
C)High risk project with an IRR of 13%
D)High risk project with IRR of 11%

 
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For a typical corporation, put the following costs from highest to lowest.

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For a typical corporation, put the following costs from highest to lowest.
A)The cost of a new equity issue (re)

B)The weighted average cost of capital (WACC)

C)The after tax cost of debt kd*(1 -Tc)

D)The cost of retained earnings (rs)

 
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Order of payment in case of bankruptcy

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Order of payment in case of bankruptcy: A)Secured Creditors B)Taxes and Wages
C)Unsecured Bondholders

D)Preferred Stock Holders

E)Common Stock Holders

 
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Project Salerino has the following cash flows

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Project Salerino has the following cash flows: CF0 = -100, C01 = -380,
C02 = 230, C03 = 850, C04 = -100. What is the FV of only the profits to Salerino if the cost of capital is 0.10?

 
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