Mirion Tech, Inc

question 6

Multiple Choice

Mirion Tech, Inc., has r_E of 12%, an r_D of 6%, at a debt-equity ratio of 0.50. Mirion plans to raise enough preferred stock to retire half of their outstanding common stock, which currently has a market value of $7 million. If the preferred stock has an expected rate of return of 10%, what is the new WACC? (Assume a 21% marginal corporate tax rate and that r_D remains at 6%.)

• A)14.23%
• B)11.02%
• C)9.58%
• D)6.60%

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Definitions:

Epigenetics

The study of changes in organisms caused by modification of gene expression rather than alteration of the genetic code itself.

Maturation

The process of becoming mature, encompassing physical, mental, and emotional growth over time.

Authoritative Parents

A parenting style characterized by high demand and high responsiveness, where parents have expectations of maturity and responsibility from their children but also provide them with love and support.

Authoritarian Parents

Parents who impose strict rules, expect absolute obedience, and often use punishment to control behavior, with little to no negotiation or discussion.