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What Is the Cost of Debt for Foggy Futures Weather

Question 99

Multiple Choice

What is the cost of debt for Foggy Futures Weather Forecasters? The firm is in the 40% tax bracket.The optimal capital structure is listed below:
 Source of Capital  Weight  Long-Term Debt 25% Preferted Stack 20% Cammon Stack 55%\begin{array} { | l | c } \hline \text { Source of Capital } & \text { Weight } \\\hline \text { Long-Term Debt } & 25 \% \\\hline \text { Preferted Stack } & 20 \% \\\hline \text { Cammon Stack } & 55 \% \\\hline\end{array}
 What is the cost of debt for Foggy Futures Weather Forecasters? The firm is in the 40% tax bracket.The optimal capital structure is listed below:  \begin{array} { | l | c }  \hline \text { Source of Capital } & \text { Weight } \\ \hline \text { Long-Term Debt } & 25 \% \\ \hline \text { Preferted Stack } & 20 \% \\ \hline \text { Cammon Stack } & 55 \% \\ \hline \end{array}    A) 5.18% B) 3.6% C) 7.5% D) 12.2%


A) 5.18%
B) 3.6%
C) 7.5%
D) 12.2%

Correct Answer:

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