If Mega Corp

question 50

Multiple Choice

If Mega Corp.borrows $9 000 and agrees to pay the lender $10 000 in 1 year,the annual interest rate on the loan is approximately _____%.

• A) 9.0
• B) 10.0
• C) 11.1
• D) 0.9

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Definitions:

Component Cost

Component cost refers to the cost associated with each separate element or 'component' in the process of calculating a company's Weighted Average Cost of Capital (WACC).

Debt Issue

The act of a company raising money through the sale of bonds or other fixed-income securities.

Tax Rate

The percentage at which an individual or corporation is taxed. The tax rate may vary based on income level, type of income, or other factors.

IOS

Stands for Input/Output System or alternatively, iOS, Apple Inc.'s mobile operating system used for its iPhones and iPads, depending on context.