Taylor's Has a Beta of 0

question 73

Multiple Choice

Taylor's has a beta of 0.97 and a debt-to-equity ratio of 0.46.The market rate of return is 11.3 percent,the tax rate is 34 percent,and the risk-free rate is 2.2 percent.The pretax cost of debt is 6.4 percent.What is the firm's WACC?

• A)8.39%
• B)7.67%
• C)8.16%
• D)9.46%
• E)8.88%

---

Definitions:

Self-construal

An individual's concept of self, shaped by personal, social, and cultural factors, influencing how one relates to others and views oneself.

Independent Self-construal

Independent self-construal refers to a self-concept that emphasizes personal goals, characteristics, and beliefs over the relationships and affiliations with groups.

Handmade Soaps

Soaps crafted by hand using traditional methods, without the use of industrial machinery.

Interdependent Self-construal

A self-concept that emphasizes what connects the self to other people and groups.