Triangle Enterprises Has No Debt but Can Borrow at 9

question 54

Multiple Choice

Triangle Enterprises has no debt but can borrow at 9 percent.The firm's WACC is currently 14.7 percent,and there is no corporate tax.If the firm converts to 70 percent debt,what will its cost of equity be?

• A)20.67 percent
• B)22.95 percent
• C)24.47 percent
• D)26.39 percent
• E)28.00 percent

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Definitions:

Psychoactive Drug

Any substance that affects the mind, altering mood, perception, or consciousness, including medications and recreational drugs.

Susceptibility

The degree to which a person or organism can be affected by a particular agent or condition.

EEG Recordings

Electrical recordings of brain activity obtained through electrodes placed on the scalp, used in neuroscience research.

Alpha Waves

Brain wave patterns associated with relaxed and calm states of mind, typically present when a person is awake but relaxed.