Take a Test - mohamed abdirhaman - Google Chrome mathxl.com/Student/Player Test.aspx?testid=2373734518.centerwin=yes FINC 2302 IFM Section 5 (Semester 1, 2021/2022) mohamed abdirhaman & 11/28/21 5:08 PM = Test: FINC 2302 - TESTI Question 1 of 4 This test: 100 point(s) possible This question: 4 point(s) possible Submit test WACCMarket value weights The market values and after-tax costs of various sources of capital used by Ridge Tool are shown in the following table: a. Calculate the firm's weighted average cost of capital b. Explain how the firm can use this cost in the investment decision-making process. a. The firm's weighted average cost of capital, g, using market value weights is % (Round to two decimal places) b. Explain how the firm can use this cost in the investment decision-making process. (Select the best answer below.) O A. The WACC is the rate of return that the firm must not exceed on long-term projects to maintain the value of the firm. The cost of capital can be compared to the return for a project to determine whether the project is acceptable. O B. The WACC is the rate of return that the firm must exceed on long-term projects to maintain the value of the firm. The cost of capital can be compared to the dollar value for a project to determine whether the project is acceptable OC. The WACC is the rate of return that the firm must receive on short-term projects to maintain the value of the firm. The cost of capital can be compared to the dollar value for a project to determine whether the project is acceptable OD. The WACC is the rate of return that the firm must receive on long-term projects to maintain the value of the firm. The cost of capital can be compared to the return for a project to determine whether the project is acceptable. Next Type here to search o 31C 4)) ENG 5:09 PM 28/11/2021 176 Take a Test - mohamed abdirhaman - Google Chrome mathxl.com/Student/PlayerTest.aspx?testid=2373734518.centerwin=yes FINC 2302 IFM Section 5 (Semester 1, 2021/2022) mohamed abdirhaman & 11/28/21 5:20 PM = Test: FINC 2302 - TESTI Question 1 of 4 This test: 100 point(s) possible This question: 4 point(s) possible O Submit test WACCMarket value weights The market values and after-tax costs of various sources of capital used by Ridge Tool are shown in the following table a. Calculate the firm's weighted average cost of capital b. Explain how the firm can use this cost in the investment decision-making process a. The firm's weighted average cost of capital, fa, using marke Data table b. Explain how the firm can use this cost in the investment de return for a project to determine whether the project is O A. The WACC is the rate of return that the firm must not e acceptable OB. The WACC is the rate of return that the firm must exceq acceptable. O C. The WACC is the rate of return that the firm must recei acceptable. OD. The WACC is the rate of return that the firm must receiy acceptable. (Click on the icon here in order to copy the contents of the data table below into a spreadsheet.) Source of capital Market value Individual cost Long-term debt $700,000 5.2% Preferred stock $30,000 11.7% Common stock equity $450,000 16.6% Jilar value for a project to determine whether the project is pllar value for a project to determine whether the project is urn for a project to determine whether the project is Print Done Next Type here to search o DEI a 4)) ENG 5:21 PM 28/11/2021 184