Financial options and weighted average cost of capital

 

Financial Options and the 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. 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.

Search the Internet for an article that supports your position and post the link in your thread for everyone to read. 

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