1. A project has an internal rate of return of 21%, while the company has a WACC of 11%. Should the company go forward with the project?
2. Suppose you own stock in a company. The current price per share =$25 and another corp announces a bid of $35 per share for all the outstanding shares. Your corp’s management FIGHTS the ‘hostile’ bid. Is management woking in your best intersest? Why or why not?