The Financing Structure of Taylor Communications Is as Follows The Weighted Cost of Debt Is
A) 2

question 100

Multiple Choice

The financing structure of Taylor communications is as follows:
$\begin{array}{lcc}\text {Source of Capital}&\text {Proportion of capital}&\text {Cost of Capital}\\\hline \text { Debt financing, } \$ 300,000 & 30 \% & 6 \% \\\text { Preferred stock, } \$ 100,000 & 10 \% & 8 \% \\\text { Common stock, } \$ 400,000 & 40 \% & 12 \% \\\text { Retained earnings, } \$ 200,000 & 20 \% & 12 \%\end{array}$

The weighted cost of debt is

• A) 2.4%
• B) 4.8%
• C) .8%
• D) 1.8%

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Definitions:

Incision

A cut made through the skin and tissue during surgery, typically to allow access to the area being operated on.

Abdomen

The part of the body between the chest and pelvis, containing digestive and other vital organs.

Cervix Dilation

The process of the cervix opening in preparation for childbirth.

Childbirth

The act of delivering a baby from the mother’s uterus to the outside world.