Table 9.3
Balance Sheet
General Talc Mines
December 31, 2014
-General Talc Mines has compiled the following data regarding the market value and cost of the specific sources of capital. Market price per share of common stock $50 Market value of long-term debt $980 per bond
The weighted average cost of capital using market value weights is ________. (See Table 9.3)
A) 11.7 percent
B) 13.5 percent
C) 15.8 percent
D) 17.5 percent

Question

Table 9.3
Balance Sheet
General Talc Mines
December 31, 2014 
-General Talc Mines has compiled the following data regarding the market value and cost of the specific sources of capital.  Market price per share of common stock $50 Market value of long-term debt $980 per bond
The weighted average cost of capital using market value weights is ________. (See Table 9.3)
A) 11.7 percent 
B) 13.5 percent 
C) 15.8 percent 
D) 17.5 percent

Quizplus · Accepted Answer

The Answer of Table 9.3
Balance Sheet
General Talc Mines
December 31, 2014 
-General Talc Mines has compiled the following data regarding the market value and cost of the specific sources of capital.  Market price per share of common stock $50 Market value of long-term debt $980 per bond
The weighted average cost of capital using market value weights is ________. (See Table 9.3)
A) 11.7 percent 
B) 13.5 percent 
C) 15.8 percent 
D) 17.5 percent

Table 9.3 Balance Sheet