The pre-tax cost of debt is 11%, preferred stock costs 14%, and equity costs 15%. What is the weighted average cost of capital assuming a tax rate of 40% and a target capital structure of 40% debt, 20% preferred stock, and 40% equity?
A) 10.6%
B) 11.2%
C) 14.0%
D) 11.4%
E) 12.8%
D
You might also like to view...
Alex wants to apply the job characteristics model to her employees’ work. She plans to sit down with each employee and describe how the employee’s job impacts the organization and brings in customers. Alex is trying to change the ________ of the jobs.
A. skill variety B. autonomy C. task significance D. feedback E. skill level
Use the information below to answer the following question(s):Howard Co. uses the direct method to prepare its operating activities section of the statement of cash flows. Indicate how each event affects net income and the three types of activities on the statement of cash flows. In the net income column, use the letter "I" to indicate increase, the letter "D" to indicate decrease, and the letters "NA" to indicate no effect on net income. In the three cash flow columns, use the letter "I" to indicate cash inflow, the letter "D" to indicate cash outflow, and the letters "NA" to indicate no effect on cash flows.On December 31, Year 1, the Prepaid Insurance account decreased by $4,000 as a result of the recognition of insurance expense in an adjusting entry. src="https://sciemce.com/media/4/ppg__10826191638__f1q12g1.jpg" alt="" style="vertical-align: 0.0px;" height="66" width="467" />
What will be an ideal response?
A "vanilla shell" building is:
a. one with full furnishing b. one without interior finish c. one that has illegal activity occurring in it d. one that is not completely constructed e. none of the other choices are correct
Which of the following exemplifies concurrent control?
A. A production supervisor providing employees with guidelines about the detection of improperly functioning machinery B. A restaurant manager visiting the kitchen to see how work is progressing C. A supervisor reviewing customer comments about service D. A café supervisor trying to change employee behavior based on customer feedback