What Is the Company Cost of Capital for a Firm

question 101

Multiple Choice

What is the company cost of capital for a firm financed with 30% debt if the debt requires a 10% return and equity requires a 16% return?

• A) 11.8%
• B) 13.3%
• C) 14.2%
• D) 14.8%

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Definitions:

Humanitarians

Individuals or organizations dedicated to promoting human welfare and social reform, often involved in efforts to aid those in need.

Social Justice

A concept aiming for fair and just relations between individuals and society, emphasizing equality, human rights, and participation for all.

Environment

The natural world or ecosystem in which living organisms interact with each other and with their physical surroundings.

Personal Defects

Characteristics or traits deemed negative or undesirable by society, often relating to one’s character or physical attributes.