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A firm's target proportions of debt, preferred and common stock are 40%, 30%, and 30% respectively.
The after-tax return on debt is 8%, the return on preferred stock is 13% and the return on common stock is
1 5%. What is the firm's weighted average cost of capital?
A. 11.6%
B. 13%
C. 12.6%
Answer: A
Explanation:
The WACC is 0.40(8) + 0.30(13) + 0.30(15) = 11.6%.
NEW QUESTION: 2
Which of the following statements is NOT true with respect to Spring's ApplicationContext? (select one)
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D. The ApplicationContext eagerly instantiates all singleton beans by default
Answer: B
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A)
B)
C)
D)
A. Option D
B. Option C
C. Option A
D. Option B
Answer: D
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D. The Net Present Value is Zero.
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