Solve for the Weighted Average Cost of Capital

question 71

Multiple Choice

Solve for the weighted average cost of capital:

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

---

Definitions:

Straight-Line Method

A depreciation technique that allocates an equal amount of depreciation to each year over the asset's useful life.

Double-Declining-Balance Method

A method of depreciation that provides for a declining periodic depreciation expense over the expected useful life of an asset.

Unamortized Premium

The portion of a bond's premium that has not yet been amortized or reduced over time through periodic charges to income.

Straight-Line Method

A method of calculating depreciation that allocates an equal amount of an asset's cost to each year of its useful life.