Jungle,Inc

question 18

Multiple Choice

Jungle,Inc.has a target debt-equity ratio of 0.72.Its WACC is 11.5 percent and the tax rate is 34 percent.What is the cost of equity if the aftertax cost of debt is 5.5 percent?

• A)13.75 percent
• B)13.84 percent
• C)14.41 percent
• D)14.79 percent
• E)15.82 percent

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Definitions:

Law Enforcement Officers

Individuals authorized to enforce laws, maintain public order, and protect citizens and property.

Artisan's Lien

A legal claim granted to craftsmen or workers on a property they have improved or materials they have supplied until they are compensated for their services.

Mechanic's Lien

A security interest granted over an item of property to secure the payment of a debt or performance of some other obligation.

Judicial Lien

A legal claim on property obtained through the court system to secure payment of a debt or judgment.