A Firm Requires an Investment of $20,000 and Borrows $10,000

question 9

Multiple Choice

A firm requires an investment of $20,000 and borrows $10,000 at 8%.If the return on equity is 20% and the tax rate is 30%,what is the firm's WACC?

• A)11.4%
• B)12.8%
• C)12..1%
• D)13.2%

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Definitions:

Object Concept

The mental representation and understanding of objects, including their properties and how they relate to other objects.

Circular Reactions

Behaviors repeated over and over again, often observed in infant development, which serve to consolidate learning and motor skills.

Qualitatively Different

Describes items or phenomena that differ in essence or kind, not just in quantity or scale.

Fixed Order

A predetermined sequence that must be followed, commonly referring to steps in a process or procedure.