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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. 12.6%
C. 13%
Answer: A
Explanation:
The WACC is 0.40(8) + 0.30(13) + 0.30(15) = 11.6%.
NEW QUESTION: 2
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C. When available, the close() method will cause any registered bean destruction code to be invoked
D. There are many different implementation classes which all implement the ApplicationContext interface
Answer: B
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A)
B)
C)
D)
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