The Company Cost of Capital for a Firm with a 65/35

question 1

Multiple Choice

The company cost of capital for a firm with a 65/35 debt/equity split,8% cost of debt,15% cost of equity,and a 35% tax rate would be:

• A) 7.02%.
• B) 9.12%.
• C) 10.45%.
• D) 13.80%.

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Definitions:

Reinforcers

Reinforcers are stimuli that increase the likelihood of a behavior being repeated, and can be positive (adding something desirable) or negative (removing something undesirable).

Desired Response

The specific outcome or behavior that a researcher or practitioner aims to elicit in a particular setting or study.

Negative Reinforcement

A stimulus that, when removed after a specific behavior, increases the likelihood of that behavior being exhibited again.

Unpleasant Stimulus

A negative or disagreeable input or event that affects an individual's mental or physical state.