Create unique hypothetical weighted average cost of capital

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Assignment

Question 1: Determine three methods of using stocks and options to create a risk-free hedge portfolio. Support your answer with examples of these methods being used to create a risk-free hedge portfolio.

Question 2: What sources of capital should be included when you estimate weighted average cost of capital (WACC)? Why?

Question 3: Should the component costs of a company be figured on a before-tax or an after-tax basis? Why?

Question 4: From the scenario, create a unique hypothetical weighted average cost of capital (WACC) and rate of return. Recommend whether or not the company should expand, and defend your position.

Reference no: EM131069715

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