Use the Information for the Question(s)below

question 13

Multiple Choice

Use the information for the question(s) below.
Flagstaff Enterprises expected to have free cash flow in the coming year of $8 million,and this free cash flow is expected to grow at a rate of 3% per year thereafter.Flagstaff has an equity cost of capital of 13%,a debt cost of capital of 7%,and it has a 35% corporate tax rate.
-If Flagstaff maintains a debt to equity ratio of 1,then Flagstaff's pre-tax WACC is closest to:

• A)11.0%.
• B)10.5%.
• C)10.0%.
• D)9.0%.

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Definitions:

Diana Baumrind

An influential developmental psychologist known for her research on parenting styles and their effects on children.

Authoritative Parents

Authoritative parents employ a parenting style characterized by high responsiveness and high demands, encouraging independence while maintaining limits and controls.

Authoritarian Parents

Parents who enforce strict rules and expect obedience without questioning, often leading to a more obedient but less happy child.

Permissive-indulgent Parenting

A style of parenting characterized by high responsiveness and low demandingness, where parents are nurturing and accepting yet provide few guidelines and rules.