MinMax Corp Has the Following Capital Structure: 55% Equity (Giving

question 18

Multiple Choice

MinMax Corp has the following capital structure: 55% equity (giving a return of 9%) ,10% preferred shares (with a yield of 6%) ,and 35% debt (with a coupon rate of 10% and yield to maturity of 6.5%) .If there are no taxes,what is the firm's WACC?

• A) 10.333%
• B) 9.050%
• C) 7.825%
• D) 6.915%

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Definitions:

Coerced

Being forced to do something or being pressured into it against one's will.

Conscientious

Characterized by a person's desire to do their work or fulfill their duties well and thoroughly.

Achievement

Refers to the successful completion or reaching of a goal, often resulting from effort and skill.

Inflexibility

The lack of adaptability or willingness to change one's thoughts, actions, or decisions in response to new information or circumstances.