Table 9.3 Balance Sheet

question 13

Multiple Choice

Table 9.3
Balance Sheet
General Talc Mines
December 31,2019
-General Talc Mines has compiled the following data regarding the market value and cost of the specific sources of capital. Market price per share of common stock $50 Market value of long-term debt $980 per bond
The weighted average cost of capital using market value weights is ________.(See Table 9.3)

• A)11.7 percent
• B)13.5 percent
• C)15.8 percent
• D)17.5 percent

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Definitions:

Planning Budget

A budget prepared for a specific level of activity, used for planning purposes.

Materials and Supplies

Items and components used in the manufacturing process or in the maintenance of equipment and facilities.

Cost Formula

An equation or calculation used to determine the costs associated with the production of goods or services.

Planning Budget

A Planning Budget is a financial plan constructed for future periods, outlining expected revenues, expenses, and other financial activities, guiding an organization in achieving its financial goals.