The Oval Bearing Corp manufactures ball bearings. Oval Bearing Corp is all equity financed and its shareholders require a return of 8%. Elliptical Bearing Inc is also a manufacturer of ball bearings
Elliptical has 30% debt in its capital structure (debt-to-equity is 0.4286), and its cost of debt is 4%. What is Elliptical's WACC? Assume that the tax rate is 0%.
A) 6.8%
B) 7.3%
C) 8.0%
D) 8.5%
E) 9.7%
C
Business
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________ are computer-aided software engineering (CASE) tools that enable the integrated storage of specifications, diagrams, reports, and project management information
A) Repositories B) Analysis tools C) Code generators D) Diagramming tools E) Documentation generators
Business
Under U.S. GAAP, the statement of cash flows classifies cash expenditures for interest on debt as an operating activity but classifies cash expenditures for dividends to shareholders as a financing activity
Indicate whether the statement is true or false
Business