A Firm Has Debt of $7,000,equity of $12,000,a Leveraged Value

question 69

Multiple Choice

A firm has debt of $7,000,equity of $12,000,a leveraged value of $8,900,a cost of debt of 7%,a cost of equity of 14%,and a tax rate of 30%. What is the firm's weighted average cost of capital?

• A) 8.45%
• B) 9.90%
• C) 10.65%
• D) 12.50%
• E) 14.00%

Recognize the importance of environmental factors and community infrastructure in disease prevention.

Understand the historical development of public health initiatives and their impact on community health.

Analyze the role of government and non-governmental organizations in the advancement of public health.

Identify key figures and their contributions to public health and nursing.

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Definitions:

Creditors' Risk

The risk to lenders that a borrower will not repay a loan or other credit extended, potentially leading to financial loss.

Liabilities

Economic dues a company is obligated to clear with others, which involves dispensing economic benefits progressively over time.

Stockholder's Equity

Ownership interest represented by what remains of a company's assets once all liabilities have been deducted.

Assets

Resources owned by a business that have economic value and can be used to meet debts or generate income.