Use the Table for the Question(s) Below

question 30

Multiple Choice

Use the table for the question(s) below.
Capital Structure and Unlevered Beta Estimates for Comparable Firms

-If the risk-free rate of interest is 6% and the market risk premium has historically averaged 5%,then the cost of capital for Oakley is closest to:

• A) 9.1%
• B) 10.2%
• C) 13.5%
• D) 14.7%

---

Definitions:

Coercive Power

is the ability to influence others' behavior through threats, punishment, or other negative sanctions, relying on fear to gain compliance.

Ostracism

The social or professional exclusion of an individual by their peers or organization, often resulting in negative psychological and emotional consequences.

Sarcasm

The use of irony to mock or convey contempt, often characterized by saying the opposite of what is meant to highlight the absurdity of a situation.

Referent Power

A form of interpersonal power that derives from being admired and respected, leading others to identify with the person having power.