A Firm Has Debt of $7,000,equity of $12,000,a Cost of Debt

question 16

Multiple Choice

A firm has debt of $7,000,equity of $12,000,a cost of debt of 7 percent,a cost of equity of 14 percent,and a tax rate of 21 percent.What is the firm's weighted average cost of capital?

• A)8.45 percent
• B)9.90 percent
• C)10.88 percent
• D)12.50 percent
• E)11.27 percent

---

Definitions:

Self-Disclosure Skills

The ability to reveal personal information about oneself to others appropriately and effectively.

Social Scripts

Schemata or guidelines stored in the brain that dictate behavior in specific social situations, based on cultural expectations and norms.

Desensitization

This refers to the process by which individuals become less sensitive or react less intensely to repeated stimuli or emotional triggers.

Priming Aggressive Thoughts

A process by which exposure to certain stimuli can increase the likelihood of aggressive responses in individuals.