Rogers Communications Is Currently Financed with 60% Equity,20% Preferred Stock,and

question 89

Multiple Choice

Rogers Communications is currently financed with 60% equity,20% preferred stock,and 20% debt.It has a cost of equity capital of 8.5%,a cost of preferred stock of 6%,and its pretax cost of debt is 7%.If the firm has a tax rate of 25%,what is Rogers's WACC?

• A)7.04%
• B)6.58%
• C)7.17%
• D)7.7%
• E)7.35%

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Definitions:

Optimist

An individual who generally believes that good things will happen and that outcomes will be favorable.

Type A Personality

A personality type characterized by a constant feeling of working against the clock and a strong sense of competition.

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An individual who remains alive or continues to exist after an event that could have killed or destroyed them.

Psychological Characteristics

Attributes of an individual's mind and behavior that distinguish them from others, including thoughts, emotions, and personality traits.