PAW Industries Has 5 Million Shares of Common Stock Outstanding

question 29

Multiple Choice

PAW Industries has 5 million shares of common stock outstanding with a market price of $8.00 per share. The company also has outstanding preferred stock with a market value of $10 million, and 100,000 bonds outstanding, each with a $1,000 face value and selling at 96 percent of par value. The cost of equity is 19 percent, the cost of preferred is 15 percent, and the cost of debt is 9 percent. If PAW's tax rate is 34 percent, what is the WACC?

• A)10.14 percent
• B)10.38 percent
• C)12.51 percent
• D)14.33 percent

Understand the various roles and responsibilities of sales personnel in different contexts.

Identify the factors influencing the compensation of sales managers and sales personnel.

Recognize the importance of customer service in sales.

Distinguish between different types of sales strategies and their applications.

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Definitions:

Open System

A system that exchanges energy or matter with its surroundings.

Intermittent Tube Feeding

A method of providing nutrition through a tube inserted in the stomach or intestine at specific times rather than continuously.

Formula Cooling

The process of bringing the temperature of a liquid infant formula down to a safe and comfortable level for feeding.

Food Coloring

Dyes or pigments used to change the color of food and drinks for aesthetics, with some concern about health impacts.