1. Reflect on (or think about) one aspect of your personal finances and discuss how might you apply the TIME VALUE of money concepts to improve that area?
2. Brealey Corp. has a target capital structure of 40% common stock, 10% preferred stock, and 50% debt. Its cost of equity is 16%, the cost of preferred stock is 7%, and the cost of debt is 12%. If the tax rate is 45%, what is Brealey Corp.’s WACC?