Solve for the Weighted Average Cost of Capital $14.20 \% \quad K _ { l } =$

question 67

Multiple Choice

Solve for the weighted average cost of capital: $14.20 \% \quad K _ { l } =$ cost of equity capital for a leveraged firm
$7 / 9 \quad \lambda =$ debt-to-total-market-value ratio
$8.0 \% \quad i =$ before-tax borrowing cost
$40.0 \% \tau =$ marginal corporate income tax rate

• A)7.00%
• B)6.89%
• C)6.73%
• D)6.67%
• E)6.57%

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Definitions:

Ethnocentric Bias

The tendency to view one's own culture or ethnicity as superior and to use one’s own cultural standards to judge others.

Biased Sample

A sample that does not accurately represent the population from which it was drawn due to systematic exclusion or over-representation of certain groups.

Ethnocentrism

The act of judging another culture solely by the values and standards of one's own culture.

Phallocentrism

The idea that the penis is central to identity and symbolically empowered.