Use the Following Information to Answer the Question(s)below

question 101

Multiple Choice

Use the following information to answer the question(s) below.
Luther Industries has 25 million shares outstanding trading at $18 per share.In addition,Luther has $150 million in outstanding debt.Suppose Luther's equity cost of capital is 13%,its debt cost of capital is 7%,and the corporate tax rate is 40%.
-Which of the following equations is INCORRECT?

• A)x_i =
• B)R_p = Σ_i x_iR_i
• C)R_p = x₁R₁ + x₂R₂ + ...+ x_nR_n
• D)E[R_p] = E[Σ_i x_iR_i]

---

Definitions:

Crucial Species

Key species that have a disproportionately large effect on their ecosystem's structure and function, often pivotal for biodiversity.

Keystone Species

A crucial species whose presence significantly influences the survival of other species in an ecosystem, and its removal would lead to significant changes in the ecosystem's structure.

Tropic Interactions

Ecological interactions that cause organisms to move or grow toward or away from stimuli, including phototropism, hydrotropism, and others.

Ecosystem Function

The collective biological, geochemical, and physical processes within an ecosystem, which support and regulate the flux of energy and matter.