A Firm Has Debt of $23,200,equity of $43,500,an Aftertax Cost

question 9

Multiple Choice

A firm has debt of $23,200,equity of $43,500,an aftertax cost of debt of 7.14 percent,a cost of equity of 12.8 percent,and a tax rate of 35 percent.What is the firm's weighted average cost of capital?

• A)9.96%
• B)7.94%
• C)8.87%
• D)10.83%
• E)10.05%

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Definitions:

Performance Management

A continuous process of setting objectives, assessing progress, and providing on-going feedback to ensure that employees are meeting their targets and career goals.

Performance Planning

The process of setting performance expectations and goals for teams or individuals to guide their work and evaluate their success.

Correcting

The act of identifying and rectifying errors or faults.

Organizational Citizenship

Behaviors by employees that are not part of their formal job requirements but help to enhance organizational functioning.