The Following Information Comes from the Galaxy Construction Balance Sheet

question 64

Multiple Choice

The following information comes from the Galaxy Construction balance sheet.The value of common stock is $10,000,retained earnings equals $7,000,total common equity equals $17,000,preferred stock has a value of $3,000,and long-term debt totals $15,000.If the cost of debt is 8.00%,preferred stock has a cost of 10.00%,common stock has a cost of 12.00%,and the firm has a corporate tax rate of 30%,calculate the firm's WACC adjusted for taxes.

• A)10.11%
• B)10.00%
• C)9.09%
• D)There is not enough information to answer this question.

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Definitions:

Congruence

Refers to the alignment or agreement between one’s internal feelings and external expressions, often highlighted in therapeutic relationships.

Spontaneity

The quality of being spontaneous; acting on impulse or without premeditation.

Supporting Nonverbal Behaviors

Nonverbal actions or gestures that reinforce verbal communication and show empathy or understanding towards others.

Empathic Responding

The act of responding to another's emotional state by understanding, feeling, and communicating that understanding back to them.