Find the Weighted Average Cost of Capital for a Firm

question 82

Multiple Choice

Find the weighted average cost of capital for a firm that has a debt-to-equity ratio of 2,a tax rate of 40 percent,a levered cost of equity of 12 percent and an after-tax cost of debt of 9 percent.

• A)7.6 percent
• B)7.968 percent
• C)10 percent
• D)none of the options

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Definitions:

Touch Discrimination

The ability to recognize and differentiate between various types of touch stimuli, such as textures or pressure.

Thermoreceptors

Sensory nerve endings under the skin that respond to changes in temperature at or near the skin and provide input to keep the body’s temperature at 98.6 degrees Fahrenheit.

Endorphins

Natural pain-relieving peptides produced by the body during exercise, excitement, pain, and sexual activity, known to induce feelings of pleasure or euphoria.

Cones

Cells in the eye's retina called photoreceptors are crucial for seeing colors and work optimally in well-lit conditions.