DQ1 What are possible capital components in the WACC equation? Select two firms in the same industry. Calculate or find the WACC for the two firms. How do the WACCs compare? Are the WACCs what you would expect? What causes the differences between the two firms' WACCs?
DQ2 What is the relevant risk of a stock, and how is it measured? The textbook provides a list of betas for a selection of stocks. Choose a few firms from that list and discuss whether the betas are what you would expect. Be sure to explain why or why not.