Zolar Corp

question 19

Multiple Choice

Zolar Corp. The following data pertains to Zolar Corp., a manufacturer of ball bearings (dollar amounts in millions) :
Determine the weight on debt capital that should be used to calculate Zolar's weighted-average cost of capital:

• A) 21.7%
• B) 78.3%
• C) 50%
• D) 58.2%

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Definitions:

Mid-Ocean Ridge

An underwater mountain range, formed by plate tectonics, featuring peaks separated by valleys with a central rift valley that forms at divergent plate boundaries.

Subduction

A geologic process where one tectonic plate moves under another, sinking into the earth's mantle.

Caldera

A vast crater on a volcano, often resulting from a major eruption and subsequent collapse of the volcano's opening.

Magma

Igneous rocks form from this liquid rock that exists below the Earth's surface, cooling and solidifying over time.