Use the Information for the Question(s)below

question 98

Multiple Choice

Use the information for the question(s) below.
Aardvark Industries is considering a project that will generate the following free cash flows: You are also provided with the following market value balance sheet and information regarding Aardvark's cost of capital:
-Aardvark's unlevered cost of equity is closest to:

• A)10.0%.
• B)10.4%.
• C)9.5%.
• D)9.0%.

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Definitions:

Harlem Hellfighters

An African American infantry unit in WWI that achieved fame for their valor and spent more time in front line trenches than any other American unit.

Jazz

A music genre that originated in the African American communities of New Orleans, early in the 20th century, characterized by strong, rhythmic underpinnings, improvisation, and distinctive tonalities.

James Reese Europe

An influential African American musician and bandleader, pivotal in the early 20th century for popularizing jazz.

Marines

A branch of the military services specialized in amphibious operations, including the landing forces for assault operations of naval expeditions.