1. Alpha Ca. has a cost of debt of 8%. The risk-free-rate of interest is 3% and the expected return on the market portfolio is 11%. If the firm has a beta of 1.7 and an effective tax rate of 30% with a capital structure that is 40% debt and 60% equity, what is the firms weighted Average Cost of Capital?
2. When dealing with international capital budgeting projects, the value of the project is not senestive to the firms cost of capital? True or False