Assume That Investors Hold Google Stock in Retirement Accounts That

question 39

Multiple Choice

Assume that investors hold Google stock in retirement accounts that are free from personal taxes.Also assume that Google's current pre-tax WACC is 14%.If Google were to issue sufficient debt at a pre-tax cost of 7% to give them a debt to value ratio of 0.5,then the Google's after-tax WACC would be closest to:

• A)10.4%
• B)12.8%
• C)13.0%
• D)15.0%
• E)16.0%

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Definitions:

Sociodramatic Play

Make-believe play in which children act out roles and themes.

Parallel Play

A stage of play in which children play next to each other without interactivity or cooperation, typically seen in toddlers.

Associative Play

A stage of play usually evident in young children where they play alongside each other but do not directly interact or cooperate.

Cooperative Play

A stage of play where children play together, creating and organizing games or activities, demonstrating teamwork and social skills.