The Weighted-Average Cost of Capital,after Tax,for a Firm with a 65/35

question 72

Multiple Choice

The weighted-average cost of capital,after tax,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) 8.63%.
• C) 10.80%.
• D) 13.80%.

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Definitions:

Obesity

A medical condition characterized by excessive body fat that presents a risk to health.

Lean Body Mass

The mass of the body minus the fat content; it includes muscles, bones, organs, and water.

Anorexia Nervosa

A psychological eating disorder characterized by an extreme fear of gaining weight, leading to severe restriction of food intake and malnourishment.

Amenorrhea

is a medical condition characterized by the absence of menstruation in someone of reproductive age, which can be caused by a variety of factors.