Roller Coaster's Has a WACC of 11

question 20

Multiple Choice

Roller Coaster's has a WACC of 11.6 percent, ignoring taxes.It has a target capital structure of 60 percent equity and 40 percent debt and a cost of equity of 14.27 percent.What is the cost of debt?

• A)5.5 percent
• B)7.6 percent
• C)9.3 percent
• D)9.4 percent
• E)18.7 percent

---

Definitions:

Personal Suitability

The assessment of an individual's characteristics, such as personality, attitudes, and work style, to determine their fitness for a specific job role.

Reliability and Validity

Refers to the consistency and accuracy of a measurement or assessment tool.

Company Sell

The process or act of transferring ownership of a company through sale to another party.

Multiple Hurdle Approach

A selection process where candidates must pass through several stages or "hurdles" of evaluation before being offered a position.