A Firm Has a Target Debt-To-Equity Ratio of 1

question 18

Multiple Choice

A firm has a target debt-to-equity ratio of 1.Its cost of equity equals 12 percent,the cost of debt is 8 percent,and the tax rate is 30 percent.What is the weighted average cost of capital (WACC) ?

• A)10.0 percent.
• B)10.8 percent.
• C)9.8 percent.
• D)8.8 percent.

Recognize the role of correlation in assessing the relationship between test scores and other variables.

Know the steps involved in selecting, administering, and evaluating the effectiveness of tests.

Grasp the importance of item characteristic curves (S curves) in Item Response Theory for item analysis.

Understand the distinctions between homeostasis and allostasis.

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Definitions:

Preoperational

A stage in Jean Piaget's theory of cognitive development, where children aged 2 to 7 years old engage in symbolic play and struggle with logic and taking the perspective of others.

Sensorimotor

The stage in Piaget's theory of cognitive development (birth to about 2 years) where infants learn about the world primarily through their senses and actions.

Centration

A cognitive limitation in young children's thinking, marked by focusing on one aspect of a situation while neglecting others, characteristic of the preoperational stage.

Conservation Skills

Cognitive abilities that enable a child to understand that quantity or amount does not change when its form or appearance is altered, a concept developed by Jean Piaget.