Suppose That TNT, Inc

question 45

Multiple Choice

Suppose that TNT, Inc. has a capital structure of 43 percent equity, 23 percent preferred stock, and 34 percent debt. If the before-tax component costs of equity, preferred stock and debt are 15.4 percent, 10 percent and 7 percent, respectively, what is TNT's WACC if the firm faces an average tax rate of 28%?

• A) 9.45%
• B) 10.64%
• C) 10.80%
• D) 11.30%

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Definitions:

Sequential Process

A series of steps or stages that are carried out in a specific order to achieve a particular goal or result.

Excellence Theory

A framework in public relations that emphasizes strategic management of communication to achieve effectiveness and acknowledges the role of public relations in organizational success.

Two-Way Symmetrical Communication

A model in public relations emphasizing mutual understanding and dialogue between an organization and its publics, rather than one-way persuasion.

Quantitative Research

A research method that involves the collection and analysis of numerical data to draw conclusions and identify patterns or trends.