Allen Corporation Has the Following Equity Structure The Weighted Average Cost of Capital Is
A) 14

question 26

Multiple Choice

Allen Corporation has the following equity structure: $$\begin{array} { l c l } & \text { Market Value } & \text { After Tax Cost } \\\text { Long-term debt } & \$ 700,000 & 15 \% \\\text { Preferred stock } & 50,000 & 5 \\\text { Common stock } & 250,000 & 15\end{array}$$ The weighted average cost of capital is

• A) 14.5%
• B) 8.2%
• C) 8.7%
• D) 10.3%

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Definitions:

Bronfenbrenner

Urie Bronfenbrenner developed the Ecological Systems Theory to explain how the inherent qualities of a child and the characteristics of the external environment which the child finds himself in interact to influence how the child will grow and develop.

Bioecological Model

A theoretical model proposing that an individual's development is influenced by the complex interrelations among various personal and environmental factors.

Mesosystem

A term from Bronfenbrenner's ecological systems theory referring to the interconnections between the microsystems in a person's life.

Epstein Model

A framework designed by Joyce Epstein that outlines six types of involvement in education: parenting, communicating, volunteering, learning at home, decision-making, and collaborating with the community.