Western Australian Mining Pty Ltd,an Australian Listed Company,has 5 000

question 14

Multiple Choice

Western Australian Mining Pty Ltd,an Australian listed company,has 5 000 000 ordinary shares outstanding and the current market price per share is $6.50.The required rate of return for the ordinary shares is estimated to be 16%.They have issued bonds with a face value of $15 000 000 but the current market value based on a yield to maturity of 9.5% is $14 950 233.If the corporate tax rate is 30% what is the weighted average cost of capital assuming an imputation tax system? Assume all registered shareholders are Australian residents and all dividends are fully franked.

• A)13.06%
• B)12.75%
• C)8.93%
• D)11.33%
• E)9.77%

Understand the role of honesty and clarity in delivering bad news.

Recognize the psychological impact of how bad news is delivered on the receiver's acceptance.

Understand the classification and accounting for held-to-maturity securities.

Recognize the nature of multinational corporations and their operations.

---

Definitions:

Private Sector

The part of the economy that is run by individuals and companies for profit and is not controlled by the state.

Bureaucratic Reform

Efforts aimed at improving the efficiency, effectiveness, and accountability of administrative agencies and public sector organizations.

Republican Administrations

Periods of governance in the United States where the executive branch is controlled by the Republican Party.

Democratic Administrations

Periods of governance in the United States where the Democratic Party controls the presidency and/or has significant influence in the legislative branch.