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.
Attachment:- The Weighted Average Cost of Capital.rar