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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:

Independent-Samples T-Test

A statistical test used to determine if there is a significant difference between the means of two groups which are independent of each other.

Dependent-Samples T-Test

A numeric examination technique for assessing whether the mean values of two correlated groups differ significantly.

Regression

A statistical method used to determine the relationship between two or more variables, where one or more independent variables are used to predict the outcome of a dependent variable.

Analysis of Variance

A statistical procedure used to compare the means of three or more samples to determine if at least one of the sample means is significantly different from the others.