The Following MINITAB Output Presents a 95% Confidence Interval Use the Appropriate Critical Value Along with the Information in

question 60

Multiple Choice

The following MINITAB output presents a 95% confidence interval.

$\begin{array} { c c c c c } \hline { \text { The assumed sigma } = 9.4962 } & \\\\\text { Variable } & \mathrm { N } & \text { Mean } & \text { SE Mean } & 95 \% \text { CI } \\\mathrm { x } & 49 & 48.340 & 1.3566 & ( 45.681,50.999 ) \\\hline\end{array}$
Use the appropriate critical value along with the information in the computer output to construct a 99 confidence interval.

• A) (44.845,51.835)
• B) (45.185,51.495)
• C) (47.206,49.474)
• D) (45.681,50.999)

Differentiate between book value and market value and understand the relevance of each in calculating WACC.

Analyze capital structure using market values to calculate the firm's WACC.

Understand the concept of marginal cost of capital (MCC) and its implications for capital budgeting.

Explain the importance of flotation costs and their impact on capital component costs and WACC.

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