1. Critique Weighted Average Cost of Capital (WACC) concepts, why is WACC an important tool in the evaluation of capital expenditure programs, financial structuring strategies, capital projects, equity recapitalization, dividend determination, financing working capital expansions, and evaluate WACC methods comparing other financial analysis applications used with WACC.
2. What is the weighted average cost of capital for Nealon where the firm maintains its target capital structure by reducing its debt offering to 40 percent of the ?$70 million in new? capital, or ?$28 ?million, using ?$20 million in retained earnings and raising ?$22 million through a new equity? offering? knowing that the wacc was 7.74.