Calculate the Weighted Average Cost of Capital (WACC)based on the Following

question 73

Multiple Choice

Calculate the weighted average cost of capital (WACC) based on the following information: the equity multiplier is 1.66; the interest rate on debt is 13%; the required return to equity holders is 22%; and the tax rate is 35%.

• A)11.5%
• B)13.9%
• C)15.0%
• D)16.6%

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Definitions:

Maintenance Rehearsal

A cognitive process that involves repeatedly verbalizing or thinking about a piece of information to keep it in short-term memory.

Mentally Repeating

The process of internally echoing or recalling information to aid in memory retention.

Electronic Storage Device

A device used to store electronic data, such as a hard drive, solid-state drive, or USB flash drive.

Priming

The process by which exposure to a stimulus influences a response to a subsequent stimulus, without conscious guidance or intention.