A Venture Has Raised $4,000 of Debt and $6,000 of Equity

question 32

Multiple Choice

A venture has raised $4,000 of debt and $6,000 of equity to finance its firm. Its cost of borrowing is 6%, its tax rate is 40%, and its cost of equity capital is 8%. What is the venture's weighted average cost of capital?

• A) 8.0%
• B) 7.2%
• C) 7.0%
• D) 6.2%
• E) 6.0%

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Definitions:

Predictive Policing

The use of data analytics, algorithms, and other technologies to identify potential criminal activity and allocate police resources accordingly.

Data Mining

Extraction of useful information and patterns from vast amounts of data through various analytical techniques.

Computer Forensics

The process of collecting, analyzing, and preserving electronic data to be used as evidence in legal proceedings, often related to crimes involving digital devices.

Deep Learning

A subset of machine learning that involves algorithms inspired by the structure and function of the brain's neural networks to learn from large amounts of data.