FDR Industries Has 50 Million Shares of Stock Outstanding Selling

question 59

Multiple Choice

FDR Industries has 50 million shares of stock outstanding selling at $30 per share and an issue of $200 million in 9.5 percent, annual coupon bonds with a maturity of 10 years, selling at 105 percent of par ($1,000) . If FDR's weighted average tax rate is 28 percent and its cost of equity is 16 percent, what is FDR's WACC?

• A)12.75 percent
• B)14.81 percent
• C)14.88 percent
• D)15.11 percent

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Definitions:

Zeitgebers

Environmental cues, such as light and temperature, that regulate the biological clock and rhythmic physiological or behavioral events.

Rhythmicity

The quality or state of being rhythmic, especially the regular recurrence of physiological processes or behaviors in an organism.

Entrainers

External cues or agents that synchronize biological rhythms to the environment, such as light influencing circadian rhythms.

Entrained Circadian Rhythm

The synchronization of the body's natural circadian rhythms (sleep-wake cycle and other biological processes) with the environment, such as the light-dark cycle.