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Using Rounded Whole Percents for the Various Costs and Weighted

Question 91

Multiple Choice

Using rounded whole percents for the various costs and weighted costs, what is the weighted average cost of capital for Foggy Futures Weather Forecasters? The firm is in the 40% tax bracket.The optimal capital structure is listed below:
 Source of Capit.ll  Weipht  Lang-Term Debt 25% Preferred Stack 20% Camman Stack 55%\begin{array} { | l | c | } \hline \text { Source of Capit.ll } & \text { Weipht } \\\hline \text { Lang-Term Debt } & 25 \% \\\hline \text { Preferred Stack } & 20 \% \\\hline \text { Camman Stack } & 55 \% \\\hline\end{array}
 Using rounded whole percents for the various costs and weighted costs, what is the weighted average cost of capital 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 Capit.ll } & \text { Weipht } \\ \hline \text { Lang-Term Debt } & 25 \% \\ \hline \text { Preferred Stack } & 20 \% \\ \hline \text { Camman Stack } & 55 \% \\ \hline \end{array}    A) 12% B) 8% C) 15% D) 18%


A) 12%
B) 8%
C) 15%
D) 18%

Correct Answer:

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