Acf final exam - Study guides, Class notes & Summaries

ACF Final Exam Questions With 100% Correct Answers. T/F WACC formula works for the "AVERAGE RISK" project - answerTrue T/F When calculating WACC for firm, one should only use MARKET values of DEBT and EQUITY - answerTrue T/F Discounting @ WACC assumes debt is rebalanced every period to maintain constant ratio debt to market value of firm - answerTrue T/F Discounting @ WACC assumes that the ratio of the debt supported by a project to the project's value remains UNCHANGED over the proje...

If we use a single cost of capital to evaluate projects through the organization, what happens to risky and safer projects? correct answer: For riskier projects, you overvalue them and the firm because the risk isn't comparable and vice versa for safer projects When comparing across firms, how can we compare risk? correct answer: We have to use Ra or beta_a of projects with similar assets R_a comparison EQ correct answer: (D/A) x R_d + (E/A) * R_E How does the unlevered value of a f...

ACF Final Exam Question and answers 100% correct 2023/2024If we use a single cost of capital to evaluate projects through the organization, what happens to risky and safer projects? - correct answer For riskier projects, you overvalue them and the firm because the risk isn't comparable and vice versa for safer projects When comparing across firms, how can we compare risk? - correct answer We have to use Ra or beta_a of projects with similar assets R_a comparison EQ - correct answer (D/A)...

If we use a single cost of capital to evaluate projects through the organization, what happens to risky and safer projects? - correct answer For riskier projects, you overvalue them and the firm because the risk isn't comparable and vice versa for safer projects When comparing across firms, how can we compare risk? - correct answer We have to use Ra or beta_a of projects with similar assets R_a comparison EQ - correct answer (D/A) x R_d + (E/A) * R_E How does the unlevered value of a f...

ACF Final Exam

ACF Final Exam

If we use a single cost of capital to evaluate projects through the organization, what happens to risky and safer projects? - correct answer For riskier projects, you overvalue them and the firm because the risk isn't comparable and vice versa for safer projects When comparing across firms, how can we compare risk? - correct answer We have to use Ra or beta_a of projects with similar assets R_a comparison EQ - correct answer (D/A) x R_d + (E/A) * R_E How does the unlevered value of a f...

A-level MATHEMATICS 7357/3 Paper 3 Mark scheme June 2024 Version: 1.0 Final *246A7357/3/MS* Mark schemes are prepared by the Lead Assessment Writer and considered, together with the relevant questions, by a panel of subject teachers. This mark scheme includes any amendments made at the standardisation events which all associates participate in and is the scheme which was used by them in this examination. The standardisa...

AS MATHEMATICS 7356/2 Paper 2 Mark scheme June 2024 Version: 1.0 Final *246A7356/2/MS* Mark schemes are prepared by the Lead Assessment Writer and considered, together with the relevant questions, by a panel of subject teachers. This mark scheme includes any amendments made at the standardisation events which all associates participate in and is the scheme which was used by them in this examination. The standardisation ...