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Although the CAPM is theoretically the correct model to use when estimating the expected rate of return on an investment, it is difficult to apply in practice because ○ firms do not issue publicly traded shares for each individual project. ○ individual project betas are almost impossible to be determined. ○ analysts do not have a way to directly estimate the returns related to each individual project. ○ all of the above. When estimating the cost of debt to use in the WACC, which of the following types of debt should be included? ○ Lines of credit ○ Commercial paper ○ Publicly traded bonds ○ All of the above The current cost of debt to use when estimating a firm's WACC is the ○ yield to maturity on its outstanding bonds ○ coupon rate on its outstanding bonds ○ the yield to call on its outstanding bonds ○ none of the above
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