WACC #1;What role does the cost of capital play in the overall financial decision making of the firm?s top managers?;DEBT VS EQUITY #2;Why do you think debt offerings are more common than equity offerings and typically much larger as well?;Questions;1.;How do we traditionally define capital budgeting in finance?;2.;What is the purpose of capital budgeting in a business firm, and how is it used?;3.;How Navistar Determined their Cost of Capital?;4.;Navistar Trucking has adopted a new approach to capital budgeting. What is the fundamental way in which the new approach differs from the traditional approach?;5.;What is the goal of the new approach of capital budgeting?;6.;Under what circumstances would a business firm drop a project chosen through the new capital budgeting approach?