use k or wacc to find Price of stock?

CFA Level I
#1

I assume k, because you need the cost of equity. But want to make sure.

#2

for this exam i’m sure it’s just k, k is also part of WACC

#3

for using k, it is only because you usually use dividend discount model to price a stock in general, match the rate with the type of cash flow you are using to price the stock e.g. dividend =>k FCFF => wacc FCFE => k

#4

k = cost of common equity? I didn’t study with Schweser, but I assume thats what you mean.

#5

WAAC is the average (overall) cost of capital of the company. If the company takes on risker or less risker than WACC projects, then WAAC must be adjusted. k - is cost of equity only (excluding cost of debt or cost of preferred shares).