If Galt's Debt Cost of Capital Is 6%,then Galt's Equity

question 40

Multiple Choice

If Galt's debt cost of capital is 6%,then Galt's equity cost of capital is closest to:

• A)11.2%
• B)12.0%
• C)14.8%
• D)15.2%

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Definitions:

Fraud In The Factum

A liability defense available to a party who signs a negotiable instrument without knowing that it is a negotiable instrument.

Real Defense

A liability defense that applies universally to all parties.

Drawee

The person or entity upon whom a check or draft is drawn and is responsible for paying the amount specified.

Presentment

The formal presentation of a financial instrument, such as a check or draft, for payment or acceptance.