Shaw Communications Is Currently Financed with 30% Equity,10% Preferred Stock,and

question 87

Multiple Choice

Shaw Communications is currently financed with 30% equity,10% preferred stock,and 60% debt.It has a cost of equity capital of 11%,a cost of preferred stock of 7.5%,and its pretax cost of debt is 6%.If the firm has a tax rate of 30%,what is Shaw's WACC?

• A)7.57%
• B)8.17%
• C)5.82%
• D)6.57%
• E)7.65%

---

Definitions:

Jewish Holocaust

The systematic, state-sponsored persecution and mass murder of six million Jews by the Nazi regime and its collaborators before and during World War II.

Jewish Holocaust

The genocide of approximately six million Jews during World War II by Nazi Germany and its collaborators.

Jewish Canadian

A citizen or permanent resident of Canada who is of Jewish heritage or faith, part of the diverse cultural mosaic of the country.

Sympathy

The feelings of pity and sorrow for someone else's misfortune, often leading to a desire to offer comfort or assistance.