PNB Industries Has 20 Million Shares of Common Stock Outstanding

question 107

Multiple Choice

PNB Industries has 20 million shares of common stock outstanding with a market price of $18.00 per share. The company also has outstanding preferred stock with a market value of $50 million, and 500,000 bonds outstanding, each with face value $1,000 and selling at 97 percent of par value. The cost of equity is 15 percent, the cost of preferred stock is 12 percent, and the cost of debt is 8.50 percent. If PNB's tax rate is 40 percent, what is the WACC?

• A)7.05 percent
• B)9.47 percent
• C)11.31 percent
• D)11.83 percent

Grasp the role of children in selecting and responding to social and moral cues in their environment.

Acknowledge the physiological, psychological, and social aspects of emotional experiences in infants.

Understands the concept of attachment and its significance in early childhood development.

Identifies the role of both infant and caregiver behaviors in the formation of attachment relationships.

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Definitions:

Mediating Variable

A variable that explains the relationship between the independent variable and the dependent variable in a statistical model.

Coefficient Of Determination

The amount of variance in one variable that is accounted for by the variance in another variable.

Positive Slope

A line on a graph that shows an upward trend, indicating that as one variable increases, the other variable also increases.

Negative Slope

A characteristic of a line on a graph indicating that as one variable increases, the other variable decreases, showing an inverse relationship.