Essay Questions:
1- Is it appropriate for a company to match capital investment projects with the specific sources of capital used to finance them?
2- If J.C. Penney acquired Neiman Marcus and used their own WACC to value the deal, what’s the consequence?
3- According to the EMH, it’s improbable that investors should be able to consistently “beat the market”. Why?
4- Why do bond prices go down if interest rates go up?