The Brassy Co

question 200

Multiple Choice

The Brassy Co. has expected EBIT = $910, an unlevered cost of capital of 12%, and debt with a face and market value of $2,000 paying an 8.5% annual coupon. If the tax rate is 34%, what is the WACC of Brassy Co.?

• A) 10.56%
• B) 11.12%
• C) 13.25%
• D) 13.64%
• E) 14.45%

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Definitions:

Department 1

A generic term that may refer to the first division or unit within an organization or company, often associated with a specific function or set of responsibilities.

Commissions Paid

Payments made to employees or agents based on their sales volume or performance.

Cost Trends

Patterns or movements in cost over a period of time, indicating how expenses are changing and affecting profitability.

Yield Trends

Refers to the patterns or movements in the yield or return on investments, securities, or assets over a certain period.