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%

Evaluate the impact of cost allocation methods on profit maximization.

Apply cost allocation concepts to scenario-based decision-making.

Understand the dynamics of group-based payment systems and their influence on consumer behavior.

Analyze the implications of cost allocation for internal management and reporting.

---

Definitions:

Social Readjustment Rating Scale

A scale designed to measure the amount of stress in a person's life resulting from major life changes, as part of the stress and coping research.

Optimists

People who tend to maintain a positive outlook and approach life's challenges with confidence and hope.

Pessimists

Individuals who tend to see the worst aspect of things or believe that the worst will happen; a tendency to expect negative outcomes.

Stress

A state of mental or emotional strain or tension resulting from adverse or demanding circumstances.