Use the Information for the Question(s)below

question 50

Multiple Choice

Use the information for the question(s) below.
Omicron Industries' Market Value Balance Sheet ($ Millions)
and Cost of Capital Omicron Industries' New Project Free Cash Flows (Millions) Assume that this new project is of average risk for Omicron and that the firm wants to hold constant its debt to equity ratio.
-Omicron's weighted average cost of capital is closest to:

• A)7.10%.
• B)7.50%.
• C)9.60%.
• D)9.10%.

---

Definitions:

Postmaster General

The head of the postal service, responsible for overseeing the operation of the national postal system.

Armed Whites

Refers to individuals of European descent who bear arms or weapons, usually in a historical or conflict context.

Colfax, Louisiana

A town in the US state of Louisiana, known historically for the Colfax Massacre of 1873, a violent event during the Reconstruction era.

Former Slaves

Describes individuals who were once enslaved but gained freedom, through various means such as emancipation, escape, or the end of slavery in their region.