A Firm Has a Beta of 1

question 25

Multiple Choice

A firm has a beta of 1.3 and a debt-to-equity ratio of .4.The market rate of return is 11.6 percent,the tax rate is 32 percent,and the risk-free rate is 3.3 percent.The pretax cost of debt is 7.2 percent.What is the firm's WACC?

• A)11.46%
• B)8.90%
• C)10.41%
• D)9.96%
• E)12.12%

Prepare adjusting journal entries based on a reconciliation report.

Identify and apply internal control principles in various contexts.

Explain the role of internal documentation and procedures in safeguarding assets.

Calculate and analyze days' sales uncollected to evaluate a company's receivables management.

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