Use the Following Information to Answer the Question(s)below

question 35

Multiple Choice

Use the following information to answer the question(s) below. The risk-free rate of interest is 3% and the market risk premium is 5%.
-The cost of capital for the oil refining division is closest to:

• A)6.5%.
• B)7.0%.
• C)8.5%.
• D)10.0%.

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Definitions:

Caffeine

A stimulant found in coffee, tea, chocolate, and certain medications that can enhance alertness and reduce feelings of tiredness.

Glucose

A rudimentary sugar that's crucial for energy in life forms and is a piece of many carbohydrate mixtures.

Oxygen

A chemical element vital for aerobic respiration in living organisms; it is critical for energy production in cells.

Oculomotor Nerve

The third cranial nerve, responsible for controlling most of the eye's movements and the constriction of the pupil.