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Find the IRR for the following project if the firm’s WACC is 8%. (6) Year Cash Flow 0 -9000 1 4,000 2 5,000 3 6,000 4 2,000  

Ten years ago, a firm issued bonds with an original maturity of 35 years. The bonds were issued with a 6% coupon rate. These bonds are currently selling for 85 (not a typo). What is the after-tax cost of debt for this firm? Assume a tax rate of 40%. (6)

When WACC = IRR, what is true about NPV? (Warning: SUPER HARD!!! Remember what WACC represents and what IRR represents) (2)

If capital rationing is taking place, this means that a firm’s capital budget is ______ which ultimately ______ the value of the firm. (2)

Which of the following projects should be accepted if a firm has a capital budget of $4,000 and a WACC of 5%? (2)  

Which of the following is the ultimate decision rule? (2)

Operating leverage is caused by a firm using ______ since this causes a ______ cost. (2)

WACC is best described as (2)

CLO 6. What is the first step in analyzing a biological phenomenon?

A farmer with 10,000 meters of fencing wants to enclose a rectangular field and then divide it into two plots with a fence parallel to one of the sides. See the figure. What is the largest area that can be enclosed? Please put your number and show your work on your paper.