The Bird Carver Has a Target WACC of 9

question 6

Multiple Choice

The Bird Carver has a target WACC of 9.5 percent.The firm has an aftertax cost of debt of 5.4 percent and a cost of equity of 14 percent.What debt-to-equity ratio is needed for the firm to achieve its target WACC?

• A)0.75
• B)0.67
• C)1.10
• D)0.93
• E)1.06

---

Definitions:

Circadian Rhythm

The internal biological clock that regulates the sleep-wake cycle and other physiological processes on a roughly 24-hour schedule.

Bright Light

Intense illumination, often used therapeutically to treat seasonal affective disorder or to adjust circadian rhythms.

Circadian Rhythm

An innate, internal method that arranges the sequence of sleep and wakefulness, occurring approximately every 24 hours.

Hypnagogic Sensations

Experiences occurring at the onset of sleep, including visual, auditory, or physical sensations that can seem vividly real.