公司理财精要版第十版课后答案.pdfVIP

CHAP TER 18 VALUATIONAND CAPITAL BUDGETINGFOR THELEVERED FIRM AnswerstoConceptsReview andCritical ThinkingQuestions 1. APV isequaltotheNPV oftheproject (i.e.thevalueoftheproject for anunleveredfirm)plusthe NPV offinancingsideeffects. 2. TheWACCisbasedon atarget debt levelwhiletheAPV isbasedontheamount ofdebt. 3. FTEusesleveredcash flow andothermethodsuseunleveredcash flow. 4. The WACCmethod doesnot explicitly includethe interest cash flows,but it doesimplicitly include the interest cost in the WACC. If he insists that the interest payments are explicitly shown, you