Sam Jones Has an Engineering Firm

question 13

Multiple Choice

Sam Jones has an engineering firm. He wants to build a new headquarters building. The building will cost $1,500,000. He will finance the entire building himself, even though bank financing is at prime plus 2 percent. The prime lending rate is currently 8.5 percent. Sam will withdraw the money for the building from his mutual fund account where he has earned 13 percent for the last ten years. What is Sam's weighted average cost of capital?

• A) 10.5%
• B) 13.00%
• C) 11.25%
• D) 8.5%

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Definitions:

Victim

An individual who suffers harm or damage as a result of a crime, accident, or other events or actions.

Family Violence

Acts of violence and abuse among family members, encompassing physical, emotional, and sexual harm.

Reported Figures

Statistics or numeric data that have been officially recorded, disclosed, or published, often relating to financial, economic, or social metrics.

Financial Exploitation

The illegal or improper use of another person's resources, assets, or funds for one's own benefit.