NARRBEGIN: Never-Crash Airlines Never-Crash Airline

question 94

Multiple Choice

NARRBEGIN: Never-crash Airlines
Never-crash Airline
Never-crash Airline has a capital structure that consists of 30% debt and 70% equity. The company’s cost of debt is 7%. The company has a beta of 1.9. The risk free rate equals 4.5% and the expected return on the market portfolio is 15%.
NARREND

-What is Never-crash Airline's WACC,if their marginal tax rate equals 34%?

• A) 19.22%
• B) 24.45%
• C) 18.50%
• D) 4.62%

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Definitions:

Rating Scale

Assessment in which a numerical value is assigned to specific behavior that is listed in the scale.

Frequency Count

Assessment in which the frequency of a particular behavior is counted.

Projective Test

is a type of psychological assessment that uses ambiguous stimuli to elicit responses that reveal aspects of an individual's personality.

Ambiguous Stimuli

Stimuli that can be understood in more than one way and often require interpretation by the individual.