Use the Information for the Question(s)below

question 13

Multiple Choice

Use the information for the question(s) below.
KT Enterprises is considering undertaking a new project.Based upon analysis of firms with similar projects,KT has determined that an unlevered cost of equity of 12% is suitable for their project.KT's marginal tax rate is 35%,its borrowing rate is 7%,and KT does not believe that its borrowing rate will change if the new project is accepted.
-If KT expects to maintain a debt to equity ratio for this project of 1,then KT's equity cost of capital,r_E,for this project is closest to:

• A)17.0%
• B)5.0%
• C)15.0%
• D)12%

Comprehend the trend towards digital invoicing requirements globally.

Identify and describe the foundational characteristics of virtual currency.

Differentiate between virtual and real currencies in terms of government backing and storage mechanisms.

Recognize the concept and implications of digital invoices in business transactions.

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Definitions:

Deposit

Money placed into a financial institution for safekeeping, which can earn interest depending on the account type.

Simple Interest Rate

The percentage of an amount of money which is paid as interest for a certain period of time, without compounding.

Investment

Allocation of resources, usually money, in expectation of a future return or profit.

Interest

The cost of borrowing money or the return on investment, typically expressed as a percentage.