Calculate the After-Tax WACC Based on the Following Information: Nominal

question 59

Multiple Choice

Calculate the after-tax WACC based on the following information: nominal interest rate on debt = 16%; cost of common equity = 30%; equity to value = 60%; debt to value = 40%; and a tax rate = 25%.

• A) 10%
• B) 16%
• C) 19.8%
• D) 22.8%
• E) 30%

---

Definitions:

Theca Interna

A layer of cells surrounding the ovarian follicle that secretes estrogen and other hormones during the female menstrual cycle.

Estrogen

A group of hormones responsible for the development and regulation of female characteristics and reproductive processes.

Granulosa Cells

Cells that line the follicle in the ovary and are responsible for the production of estrogen and the nourishment of the oocyte (egg cell).

GnRH Secretion

The release of Gonadotropin-Releasing Hormone, a peptide hormone responsible for triggering the pituitary gland to release gonadotropins.