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Discounting unlevered cash flows, cost of debt, WACC

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1. Discounting the unlevered after tax cash flows by the __________ minus the ________ yield the __________.
a. cost of capital for the unlevered firm; initial investment; adjusted prevent value.
b. Cost of equity capital; initial investment; project NPV.
c. Weighted cost of capital; fractional equity investment; project NPV.
d. cost of capital for the unlevered firm; initial investment; all-equity net present value.
e. none of the above.

2. The appropriate cost of debt to the firm is:
a. the weighted cost of debt after tax.
b. the levered equity rate.
c. the market borrowing rate after tax.
d. the coupon rate pre-tax.
e. All of the above.

3. The weighted average cost of capital is determined by:
a. multiplying the weighted average after tax cost of debt by the weighted average cost of equity.
b. adding the weighted average before tax cost of debt to the weighted average cost of equity.
c. adding the weighted average after tax cost of debt to the weighted average cost of equity.
d. dividing the weighted average before tax cost of debt to the weighted average cost of equity.
e. dividing the weighted average after tax cost of debt to the weighted average cost of equity.

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Response discusses the Discounting unlevered cash flows, cost of debt, WACC

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1. Discounting the unlevered after tax cash flows by the __________ minus the ________ yield the __________.

e . none of the ...

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