What Is the Cost of Debt for Foggy Futures Weather

question 101

Multiple Choice

What is the cost of debt for Foggy Futures Weather Forecasters? The firm is in the 40% tax bracket. The optimal capital structure is listed below:

• A) 5.18%
• B) 3.6%
• C) 7.5%
• D) 12.2%

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Definitions:

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