How much did your grandmother originally


1. A firm has $500 in debt at a cost of 7%, a 34% tax rate, a total firm value of $1,100, and an unlevered return of 13%. What is the WACC?

a. 11.41%

b. 9.74%

c. 11.84%

d. 9.24%

e. 10.99%

2. Today, your grandmother gave you a gift of $25,000 to help pay for your college education. She told you that this amount was the result of a one-time investment at 7.2% interest 14 years ago. How much did your grandmother originally invest?

a. $9,192.45

b. $9,445.24

c. $9,225.00

d. $9,373.49

e. $9,504.55

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Financial Management: How much did your grandmother originally
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