Homework answers / question archive / Topic/Question #1 - On the most basic level, if a firms' WACC is 12%, how would you explain that to someone who is new to corporate finance? In calculating WACC, if you had to use book values for either debt or equity, which would you choose? Why? If you can borrow all the money you need for a project at 6% doesn't it follow that 6% is your cost of capital for the project? Why or why not? Additional information: All sources must be cited

Topic/Question #1 - On the most basic level, if a firms' WACC is 12%, how would you explain that to someone who is new to corporate finance? In calculating WACC, if you had to use book values for either debt or equity, which would you choose? Why? If you can borrow all the money you need for a project at 6% doesn't it follow that 6% is your cost of capital for the project? Why or why not? Additional information: All sources must be cited

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Topic/Question #1 - On the most basic level, if a firms' WACC is 12%, how would you explain that to someone who is new to corporate finance? In calculating WACC, if you had to use book values for either debt or equity, which would you choose? Why? If you can borrow all the money you need for a project at 6% doesn't it follow that 6% is your cost of capital for the project? Why or why not? Additional information: All sources must be cited