Use the Information for the Question(s)below

question 53

Multiple Choice

Use the information for the question(s) below.
Omicron Industries' Market Value Balance Sheet ($ Millions)
and Cost of Capital Omicron Industries New Project Free Cash Flows Assume that this new project is of average risk for Omicron and that the firm wants to hold constant its debt to equity ratio.
-Omicron's weighted average cost of capital is closest to:

• A)7.10%
• B)7.50%
• C)9.60%
• D)8.75%

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Definitions:

Transcend Self-Interest

The act of prioritizing the needs, goals, or well-being of others or the collective over personal gain.

Organization

An entity comprising multiple people, such as an institution or an association, that has a collective goal and is linked to an external environment.

Charisma

A personal quality that gives an individual influence or authority over large numbers of people.

Chief Executives

Top-level managers who are responsible for the overall direction and success of an organization.