1. (TRUE or FALSE) The weighted average cost of capital (ka or WACC) is based on the costs of debt only because it is the cheapest sources of the capital.
2. (TRUE or FALSE) All independent projects with NPVs greater than or equal to zero should be accepted.
3. (TRUE or FALSE) A convertible bond holder may send it back to the issuing company and convert it into a certain number of shares of that company’s common stock.