Use the Table for the Question(s)below

question 36

Multiple Choice

Use the table for the question(s) below.
Consider the information for the following four firms:
-The unlevered cost of capital for "Eenie" is closest to:

• A)6.0%
• B)5.5%
• C)7.5%
• D)6.5%

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Definitions:

Par Value

A nominal value assigned to a share of stock in the corporation's charter, serving as the minimum price at which shares can be issued.

Common Stock

A type of equity security that represents ownership interest in a corporation, giving shareholders voting rights and a share in the company's profits via dividends.

Treasury Stock

Repurchased shares by a company, treasury stock is treated as an asset on the balance sheet and can affect the company's shareholders' equity and earnings per share.

Paid-In Capital

Funds received from investors in exchange for shares of a company's stock, reflecting the equity capital contributed by shareholders.