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:

Glial Cells

Non-neuronal cells in the central and peripheral nervous system that provide support and protection for neurons, also playing a role in signal transmission.

Electroconvulsive Therapy

Electroconvulsive therapy (ECT) is a medical treatment which involves inducing seizures in patients under general anesthesia to provide relief from severe mental illnesses, notably major depressive disorder and bipolar disorder.

Brain-Derived Neurotrophic Factor

Brain-Derived Neurotrophic Factor (BDNF) is a neurotrophin involved in the survival, development, and plasticity of neurons in the central and peripheral nervous systems.

Glutamate

An important neurotransmitter in the brain that plays a key role in learning and memory, functioning as a chemical messenger between neurons.