Financial Assignment
Using United Airlines Publicly traded company
If there is no preferred stock than Cost of capital = Wd * Kd (1-t)+ Ws* Ks.
If PS then, Cost of capital = Wd * Kd (1-t)+ Ws* Ks + Wps *Kps
Wd = total long-term debt/TA, Ws = Total Equity/TA, Wps= Total PS/TA
1. If your chosen company uses its cost of capital for all projects, do you think the firm becomes riskier or less risky? (discuss).
2. Briefly compare and contrast the NPV, PI, IRR, and MIRR criteria. What are advantages and disadvantages of using each of these methods.
The response should include a reference list. Double-space, using Times New Roman 12 pnt font, one-inch margins, and APA style of writing and citations.