Worldwide Inc

question 48

Multiple Choice

Worldwide Inc.is an import-export company specializing in products from Canada,Australia,and the West Coast.It can borrow in the debt market at 8%.Its cost of equity with 30% D/V ratio is 13%.Its corporate tax rate is 30%.If the M&M world of taxes holds true,what is the WACC for the firm with a 30% D/V financing?

• A)11.90%
• B)11.05%
• C)10.78%
• D)9.44%

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Definitions:

Creative Innovation

The process of introducing novel and original ideas or methods that result in significant improvements or advancements.

Knowledge Management

The systematic process of creating, sharing, using, and managing the knowledge and information of an organization.

Electronic Storage

The process of storing data and information digitally on electronic systems or devices such as hard drives, SSDs, or cloud storage.

Retrieval

The process of getting information or objects back from somewhere, especially from memory.