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

question 24

Multiple Choice

The weighted-average cost of capital for a firm with a 65/35 debt/equity split,8% pre-tax cost of debt,15% cost of equity,and a 35% tax rate is:

• A) 8.63%.
• B) 9.12%.
• C) 10.45%.
• D) 13.80%.

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Definitions:

Psychodynamic Therapy

A therapeutic approach aiming to explore the psychological forces that underlie human behavior, feelings, and emotions, often focusing on the impact of the unconscious.

Systematic Desensitization

A therapeutic technique in behavioral therapy used to help patients overcome phobias and anxiety disorders by gradually exposing them to the object of their fear in a controlled environment.

Cognitive Therapy

A form of psychotherapy that emphasizes the importance of challenging and changing unhelpful thoughts and beliefs to treat mental disorders.

Humanistic Therapists

Practitioners who adopt a client-centered approach, focusing on individual potential and emphasizing the importance of self-actualization and personal growth.