The Wintergreen Organization,whose Tax Rate Is 30%,generates Two Sources of Funds

question 74

Multiple Choice

The Wintergreen Organization,whose tax rate is 30%,generates two sources of funds: long-term debt with a market value of $7,000,000 and an interest rate of 8%,and equity capital with a market value of $12,000,000 and a cost of equity of 11%.What is Wintergreen's weighted cost of capital (WACC) ?

• A).050
• B).060
• C).070
• D).080
• E).090

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Definitions:

Physical Relaxation

A state of being free from tension and anxiety in the body, often achieved through techniques like deep breathing, meditation, or yoga.

Jargon

Specialized language used by a particular group or profession that may be difficult for others to understand.

Verbal Communication

The use of spoken words to convey messages, ideas, or information between individuals.

Pent-up Emotions

Emotions that have been suppressed or not expressed, often leading to increased stress or emotional outbursts when released.