What is weighted average cost of capital

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Reference no: EM132061072

1. Which of the following is a form of a takeover?

I. tender offer

II. merger

III. proxy contest

IV. going private transaction

I, II, and III only

II, III, and IV only

I, II, III, and IV

I and II only

III and IV only

2. Wentworth's Five and Dime Store has a cost of equity of 12.5 percent. The company has an aftertax cost of debt of 4.6 percent, and the tax rate is 35 percent. If the company's debt–equity ratio is .85, what is the weighted average cost of capital?

7.36%

7.50%

6.87%

8.13%

8.87%

Reference no: EM132061072

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