The Following Information Relates to the Atlas Division of Global

question 38

Multiple Choice

The following information relates to the Atlas Division of Global Enterprises: $$\begin{array} { l l } \text { Interest rate on debt capital } & 8 \% \\\text { Cost of equity capital } & 12 \% \\\text { Market value of debt capital } & \$ 50 \text { million } \\\text { Market value of equity capital } & \$ 80 \text { million } \\\text { Income tax rate } & 30 \%\end{array}$$ On the basis of this information, Atlas's weighted-average cost of capital is closest to:

• A) 7.3%.
• B) 8.3%.
• C) 9.5%.
• D) 10.8%.
• E) None of the other answers are correct.

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Definitions:

Hypothalamus

A small region of the brain's base playing a crucial role in many functions, including releasing hormones, regulating body temperature, and maintaining daily physiological cycles.

Ghrelin

A hormone produced in the stomach that stimulates hunger and plays a role in regulating energy balance.

Extrinsic Motivation

A form of motivation that is driven by external rewards or pressures, rather than internal satisfaction.

Homeostasis

The self-regulating process by which biological systems maintain stability while adjusting to conditions that are optimal for survival.