Use the Following Information to Answer the Question(s)below

question 18

Multiple Choice

Use the following information to answer the question(s) below.
Galt Industries is expected to generate free cash flows of $24 million per year.Galt has permanent debt of $80 million,a corporate tax rate of 21%,and an unlevered cost of capital of 12% and its cost of debt capital is 6%.
-Galt's WACC is closest to:

• A)6.0%.
• B)9.6%.
• C)11.1%.
• D)10.7%.

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Definitions:

Individual Parts

Components or pieces that when combined form a whole system or object.

Physiological Psychology

A branch of psychology that studies the relationship between behavior and the physical processes of the brain and other parts of the nervous system.

University of Leipzig

The University of Leipzig is a renowned research university located in Leipzig, Germany, established in 1409, making it one of the world's oldest universities.

Wilhelm Wundt

A German psychologist widely considered the father of experimental psychology, who established the first psychological laboratory.