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Using Rounded Whole Percents for the Various Costs and Weighted

question 89

Multiple Choice

Using rounded whole percents for the various costs and weighted costs, what is the weighted average cost of capital for Foggy Futures Weather Forecasters? The firm is in the 40% tax bracket.The optimal capital structure is listed below:
$\begin{array} { | l | c | } \hline \text { Source of Capit.ll } & \text { Weipht } \\\hline \text { Lang-Term Debt } & 25 \% \\\hline \text { Preferred Stack } & 20 \% \\\hline \text { Camman Stack } & 55 \% \\\hline\end{array}$
$Using rounded whole percents for the various costs and weighted costs, what is the weighted average cost of capital for Foggy Futures Weather Forecasters? The firm is in the 40% tax bracket.The optimal capital structure is listed below: \begin{array} { | l | c | } \hline \text { Source of Capit.ll } & \text { Weipht } \\ \hline \text { Lang-Term Debt } & 25 \% \\ \hline \text { Preferred Stack } & 20 \% \\ \hline \text { Camman Stack } & 55 \% \\ \hline \end{array} A) 12% B) 8% C) 15% D) 18%$

Definitions:

Triple Bond

A chemical bond in which three pairs of electrons are shared between two atoms, making it stronger and shorter than single and double bonds.

Molecular Formula

A notation that shows the type and number of atoms in a molecule but not their structural arrangement.

1-Hexyne

A colorless, flammable liquid hydrocarbon with a triple bond in its structure, part of the alkyne group, used in organic synthesis.

Condensed Structural Formula

A method of describing the elements or molecules that comprise a compound and the way in which they are bonded to each other, using lines for bonds and showing minimal detail.