Young Company Has a Tax Rate of 40 Per Cent

question 15

Multiple Choice

Young Company has a tax rate of 40 per cent. Information for the company is as follows: $\begin{array}{lrc}& \text { Amount } & \text { After-tax Cost } \\ \text { Mortgage bonds } & £ 1,000,000 & 0.048 \\\text { Unsecured bonds } & 3,000,000 & 0.050 \\\text { Common stock (ordinary share capital) }& 6,000,000 & 0.150\end{array}$ What is the weighted cost of capital?

• A)0.1098
• B)0.2480
• C)0.0827
• D)0.0366

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Definitions:

Confidence Level

A statistical measure that expresses the degree of certainty or trust in a sampling method or experimental result.

Recollection

The action of remembering something not immediately present to the senses, often through conscious effort.

Memories Accuracy

The extent to which recalled information matches the original encoded event, important for the integrity of human memory.

Lane's Reconsolidation Therapy

Lane's Reconsolidation Therapy is a therapeutic approach based on the concept of memory reconsolidation, aimed at helping individuals alter distressing memories by updating them with new, non-threatening information.