Today your grandmother gave you a gift of 22000 to help pay


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 12%. What is the WACC?

a. 10.15%

b. 9.24%

c. 11.41%

d. 10.99%

e. 11.84%

2. Today, your grandmother gave you a gift of $22,000 to help pay for your college education. She told you that this amount was the result of a one-time investment at 8% interest 11 years ago. How much did your grandmother originally invest?

a. $9,225.00

b. $9,435.42

c. $9,504.55

d. $9,192.45

e. $9,419.25

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Financial Management: Today your grandmother gave you a gift of 22000 to help pay
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