Financial options and weighted average cost of

Question

Financial Options and Weighted Average Cost of Capital (WACC)" Please respond to the following:

Determine two to three (2-3) methods of using stocks and options to create a risk-free hedge portfolio can be created. Support your answer with examples of these methods being used to create a risk-free hedge portfolio.

 From the scenario, create a unique hypothetical weighted average cost of capital (WACC) and rate of return. Recommend whether or not the company should expand, and defend your position.

Answer 1

As showing scenario read it carefully and the given topic is Financial Options and Weighted Average Cost of Capital (WACC)" Please respond to the subsequent: Find out one to three (1-3) techniques of using stocks and options to generate a risk-free hedge portfolio can be created. Support your answer through instances of these methods being utilized to create a risk-free hedge portfolio. From the scenario, make an exclusive hypothetical weighted average cost of capital (WACC) and rate of return. Suggest whether or not the company must expand, and defend your position.