“Financial Options and Weighted Average Cost of Capital

“Financial Options and Weighted Average Cost of Capital (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.