Finally There! Has 1,500 Bonds Outstanding with a $1,000 Par

question 11

Multiple Choice

Finally There! has 1,500 bonds outstanding with a $1,000 par value,a yield to maturity of 6.4 percent,and a market price of $989 each.The firm also has 74,000 shares of common stock outstanding at a price per share of $35 and a beta of 1.08.The risk-free rate is 2 percent,the market risk premium is 7 percent,and the tax rate is 34 percent.What is the company's WACC?

• A)9.58%
• B)8.34%
• C)7.62%
• D)9.19%
• E)10.12%

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Definitions:

PQRST

A mnemonic used in medical practice to assess pain; it stands for Provocation/Palliation, Quality/Quantity, Region/Radiation, Severity Scale, and Timing.

Chest Pain

Aching or discomfort in the chest area, which can be a symptom of various conditions, including heart attack or indigestion.

Severity

The intensity or seriousness of a condition, symptom, or disease, often influencing the approach to treatment or management.

PQRST

A mnemonic used in medical assessment to evaluate pain; it stands for Provokes, Quality, Radiates, Severity, and Time.