1. How is the WACC for a firm calculated? And What does the WACC for a firm tell us? (0.5 point)
2. What is the difference between business risk and financial risk? (0.5 point)
3. How do stock repurchases differ from dividends? (1 point)
4. The MRR Golf Resorts is redoing its golf course at a cost of $2,744,320. It expects to generate cash flows of $1, 223,445, $2,007,812, and $3,147,890 over the next three years. If the appropriate discount rate for the firm is 13 percent, what is the NPV of this project?