Suppose the WACC for a Canadian Company Is 8%,and the Canadian

question 67

Multiple Choice

Suppose the WACC for a Canadian company is 8%,and the Canadian risk-free interest rate is 2.5%.If the Japanese risk-free interest rate is 0.5%,what is the company's Japanese WACC?

• A)7.5%
• B)10.1%
• C)5.9%
• D)8.5%
• E)6%

---

Definitions:

Tactical Plan

A short-term, specific plan that outlines actions, resources, and timelines to achieve a part of a strategic goal.

Caveat Emptor

This Latin phrase means "let the buyer beware," implying that the buyer assumes the risk for the quality and condition of goods purchased unless they are protected by warranty.

American Business

Aspects, practices, or characteristics unique to business operations in the United States, covering economic, legal, and sociocultural components.

John F. Kennedy

The 35th President of the United States, known for his contributions to civil rights, space exploration, and international diplomacy.